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Suppose that the R & B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,600 cases. A case
Suppose that the R & B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,600 cases. A case of the soft drink costs R & B $13.00. Ordering costs are $20.00 per order and holding costs is $0.75 per case. Identify the following aspects of the inventory policy
a) What is the Economic Order quantity?
b) What would the annual holding cost be?
c) What would the annual ordering cost be?
d) What would the total annual inventory cost be?
e) How many orders per year would be placed.
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