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The Korner Kandy Store reviews its inventory of gummy bears every 2 weeks. The lead time to deliver the order is 3 days. The daily
The Korner Kandy Store reviews its inventory of gummy bears every 2 weeks. The lead time to deliver the order is 3 days. The daily demand for gummy bears is 3 lbs with a standard deviation of 0.5 lbs. They purchase the gummy bears at a cost of $1.25/lb.
Their cost of capital is 12% , ordering costs are $10 per order.
What is the total annual cost of their period review process?
Group of answer choices
A : - 3.15
B :- 257
C :- 58
D :- 261
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