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As an intern at Abilene Cracker Distribution Company ( ACDC ) , you have been asked to analyze the inventory policies for the company's single
As an intern at Abilene Cracker Distribution Company ACDC you have been asked to analyze the inventory policies for the company's singleserve twocracker packages distributed across Texas, New Mexico and Oklahoma.
Your manager provided you the following worksheet to complete:
Your manager provided helpful equations at the bottom of the worksheet
For all questions show your work.
Part A: EOQ, TAC,...
Average demand: cases of crackers per year demand and lead time uncertainty will be addressed in part B:
Cracker cost: $ per case
Each order delivery cost: $
Carrying cost: Money spent on crackers has an alternative investment with annual interest of
How many times per year do you expect to order the singleserve cracker package cases? no need to round
Answer:
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