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R & B Beverage is a distributor of beer, wine and soft drinks products. From a main warehouse in Columbus, Ohio, R & B supplies
R & B Beverage is a distributor of beer, wine and soft drinks products. From a main warehouse in Columbus, Ohio,
R & B supplies nearly retail stores with beverage products. The warehouse runs its distribution trucks days a
week.
The warehouse manager has decided to do a detailed study of the inventory costs associated with Bub Beer, the
numberoneselling R & B beer. She wants to determine how much to order and when to order for Bub Beer that
results in the lowest possible cost.
After tracking sales for the past weeks, the sales manager can safely assume weekly sales are about cases.
The assumption of constant demand appears appropriate. Considering warehouse cost, rate of return, breakage,
taxes, pilferage and spoilage, the annual inventory holding cost is about of the value of the inventory. R & B
pays about $ per case.
The cost of placing an order includes the salary of purchasers, transportation and receiving costs. All of those costs
total about $ per order regardless of the order quantity. How many cases SHOULD the manager order at a time to minimize total annual inventory carrying cost and
ordering cost. Assume weeks per year. Round your answer to the nearest integer. SHOW ALL WORK IN THE
BOX BELOW, ELSE, NO CREDIT. Whats the total annual cost of this inventory policy? Round your answer to the nearest dollar. SHOW ALL
WORK IN THE BOX BELOW, ELSE, NO CREDIT. Whats the total annual cost of this inventory policy? Round your answer to the nearest dollar. SHOW ALL
WORK IN THE BOX BELOW, ELSE, NO CREDIT.
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