A hypermarket store sells a popular soft drink that has a constant annual demand of 24,000 cases.

While placing an order, the hypermarket incurs a cost of $25 per order and receives its ordered cases instantaneously. Holding costs are $4.80 per case per year. The hypermarket is open 6 days a week and 52 weeks a year. Identify the following features of the inventory policy.

a. The optimal order quantity per order

b. The optimal number of orders per year

c. The time between the orders in days

d. The minimum total annual inventory costs

e. The reorder point if the supplier needs a lead time of nine days to supply the order instead of instantaneous delivery

 LO.1