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The local distributor for is reconsidering its inventory policy now that only kegs will be sold. The sales forecast for next year ( 2 0

The local distributor for is reconsidering its inventory policy now that only kegs will be sold. The sales forecast for next year (200 days) is 600 kegs. The cost to store a keg of in a refrigerated warehouse isapproximately $3 per year. Placing an order with the factory costs about $4.The demand for during the one-day lead time is shown below.Lead-Time Demand (Kegs)Probability00.0310.1220.2030.3040.2050.1260.03Recommend an EOQ for Page 45 Heavy Beer.If orders are placed in carload lots of 200 kegs, the brewery

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