Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A grocery store needs to sell 3,000 cartons of 2L 2% milk per month. The sales is relatively constant throughout the month. The owner of

A grocery store needs to sell 3,000 cartons of 2L 2% milk per month. The sales is relatively constant throughout the month. The owner of this grocery store purchases milk from a supplier 50 miles away for $2 per carton, and it takes a day to restock. The holding cost per carton per month is $1.5, and the ordering cost per order is about $18.5 including labor, gas and depreciation. Consider a month of 30 days. Question 1 of 3 5.0 Points The optimal order quantity is about cartons of milk, and the average inventory is about cartons. (Please round to the closest integer and include no units.) Question 2 of 3 5.0 Points Given the optimal order quantity calculated above, if the average inventory is 136 cartons, then the monthly holding cost is dollars, and the total cost including the cost of supply, holding and ordering is dollars. (Please round to two decimal points and include no units.) Question 3 of 3 3.0 Points The reorder point is cartons. (Please only enter an integer and include no units.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Port Infrastructure Finance

Authors: Hilde Meersman, Eddy Van De Voorde, Thierry Vanelslander

1st Edition

0415720060, 978-0415720069

More Books

Students also viewed these Finance questions

Question

Define Administration?

Answered: 1 week ago