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A large dairy firm, the C&B Company, buys bins every year, which it uses in the warehousing of its bottled products. A local vender has
A large dairy firm, the C\&B Company, buys bins every year, which it uses in the warehousing of its bottled products. A local vender has offered the following discount schedule for bins: The average yearly replacement is 2000 bins. The carrying (inventory) costs are 20% of the unit price and ordering cost per order is $50. The lead time was 2 days. Determine the following: 1. What is the optimal order quantity? 2. What is the total cost at optimal order quantity? 3. What is the average inventory? 4. What is the total number of orders per year? 5. How days needed to fulfill an order? (Assuming 365 days a year) 6. C\&B found the optimal order quantity policy can lead to large storage, moreover, the milk might be expired, where the bin shelf life was 3 weeks at max. Would you suggest a
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