Use the 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.