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Use following information from KMK Brewery Inc. Annual Demand: 3,600 beer cases Case value: $60 each Inv Carrying Cost: 20% Ordering Cost: $1000 360 days

Use following information from KMK Brewery Inc.

  • Annual Demand: 3,600 beer cases

  • Case value: $60 each

  • Inv Carrying Cost: 20%

  • Ordering Cost: $1000

  • 360 days per year

  • Determine the holding/ ordering cost when placing 500 cases per order

  • Determine the holding/ ordering cost when placing 1000 cases per order

  • Draw the inventory flow diagram of the two situations

  • Determine the Economic Order Quantity

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