Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,600 cases. A case of the soft drink costs R&B $4. Ordering costs are $22 per order and holding costs are 23% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy:

a. Economic order quantity. If required, round your answer to two decimal places.
Q = 
b. Reorder point. If required, round your answer to the nearest whole number.
r =
c. Cycle time. If required, round your answer to two decimal places.
T = days
d. Total annual cost. If required, round your answer to two decimal places.
TC = $

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