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5) R&B Beverage Co. has a soft drink product that shows a constant annual demand rate of 5900 cases. A case of the soft drink
5) R&B Beverage Co. has a soft drink product that shows a constant annual demand rate of 5900 cases. A case of the soft drink costs R&B $7.40. Ordering costs are $21 per order and holding costs are 8% of the value of the inventory. R&B has 280 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy: a. Economic order quantity b. Reorder point c. Cycle time d. Total annual cost
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