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a and b are correct please solve for c Wildhorse Dining sells high-end stemware. During a year, Wildhorse Dining sells 1,700 cases of stemware with
a and b are correct please solve for c
Wildhorse Dining sells high-end stemware. During a year, Wildhorse Dining sells 1,700 cases of stemware with average sales of 4 cases per day. The cases of stemware cost $245 each. Because the stemware is fragile and requires special handling, the carrying costs are $50 per case. The ordering costs are $17.00 per order. Currently, Wildhorse Dining is placing orders every week (5 days lead time) for 20 cases. Although this usually met demand, Wildhorse Dining has faced stock-outs and has had to disappoint customers. In reviewing historical sales records, managers learn that the maximum sales quantity is 7 cases per day. (a) Your answer is correct Calculate the total ordering cost and carrying cost for the current order size. (Round answers to 2 decimal places, eg. 125.74.) Ordering cost 1445 Carrying cost $ 500 Total Cost $ 1945 Calculate the economic order quantity. Comment on how this order quantity will help impact Wildhorse Dining's inventory handling concerns. Economic order quantity 34 cases Economic order quantity should help impact Wildhorse Dining's inventory handling concerns. c) Calculate the appropriate re-order point. Safety Stock cases Re-order point casesStep by Step Solution
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