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Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,400 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 3,400 cases. A case of the soft drink costs R&B $3. Ordering costs are $20 per order and holding costs are 25% 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 (round your answer to the nearest integer.) (b) reorder point (c) cycle time in days) (round your answer to two decimal places.) days (d) total annual cost (in $) (round your answer to two decimal places.) $
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