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Sages Scents uses specially designed and labelled bottles to package its line of natural shampoos and body washes. The following information is available to assist

Sages Scents uses specially designed and labelled bottles to package its line of natural shampoos and body washes. The following information is available to assist managers determine how many bottles to order and when to order.

Annual usage 446.34 cases
Cost to place an order (K) $16
Cost to carry one unit (H) $3
Daily usage 5 cases
Lead time 5 days
Price per case $31.00

The supplier has offered a quantity discount option.

Quantity Price per Case
1100 cases $31.00
101250 cases $29.30
2511,000 cases $27.70
1,001 + cases $26.40

(a)

Calculate the economic order quantity for Sages Scents current level of production.

Economic order quantity 69

(b)

Evaluate the quantity discounts offered by the supplier.

The lowest cost order size is 251

(c)

Determine the re-order point.

Re-order point

Type your answer here cases

_______________

a and b are correct please solve c ( the re-order point)

Please only complete if you know what youre doing. thank you

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