Question
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,200 cases. A case of the
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,200 cases. A case of the soft drink costs R&B $2. Ordering costs are $25 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:
Economic order quantity. If required, round your answer to two decimal places.
Q* =
Reorder point. If required, round your answer to the nearest whole number.
r =
Cycle time. If required, round your answer to two decimal places.
T =
Total annual cost. If required, round your answer to two decimal places.
TC = $
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