Question
Problem 10-01 (Algorithmic) Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,700 cases. A
Problem 10-01 (Algorithmic) Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,700 cases. A case of the soft drink costs R&B $4. Ordering costs are $24 per order and holding costs are 26% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy:
A. Economic order quantity. If required, round your answer to two decimal places.
Q* =?
B. Reorder point. If required, round your answer to the nearest whole number.
r =?
C. Cycle time. If required, round your answer to two decimal places.
T = ??? days
D. Total annual cost. If required, round your answer to two decimal places.
TC = $?
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