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Lunas is a convenient store that purchases water from a bottling company in Ocho Rios. Lunas is opened every day except Easter Monday and
Lunas is a convenient store that purchases water from a bottling company in Ocho Rios. Lunas is opened every day except Easter Monday and Christmas Day. The demand for water is 200 bottles per day. Each bottle of water cost $100. The annual holding cost rate is 14%. Lunas ordering cost is $3,500. The lead time for the delivery is 4 days on each order. a) How many bottles of water do you recommend that Lunas order every time it places an order. b) Determine the estimated holding cost; and ordering cost e) How much time will elapse between each order d) How many orders will be placed each year e) Determine the re-order point f) Advise Lunas on what will be their Total Annual Cost o
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