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The Big Buy Supermarket stocks Munchies Cereal. Demand for Munchies is 4, 000 boxes per year (365 days). It costs the store $60 per order
The Big Buy Supermarket stocks Munchies Cereal. Demand for Munchies is 4, 000 boxes per year (365 days). It costs the store $60 per order of Munchies, and it costs $0.80 per box per year to keep the cereal in stock. Once an order for Munchies is placed, it takes 4 days to receive the order from a food distributor. Determine the following: The optimal order size The minimum total annual inventory cost The reorder point
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