Compute the total cost of inventory

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Reference no: EM131188765

Joe's Bar (not its real name) uses 800 kegs of adult beverages per year on a continuous basis (assume 365 days of operations per year). The order cost is $50.00 per order and the carrying cost is $2.00 per unit. It takes 5 days to receive a shipment after an order has been placed (old Joe took this TQM course so he now believes in JIT inventory methods - in other words- assume no safety stock). I need you to calculate four things (and again I need to see your work including a formula if needed) a. Calculate the EOQ b. Determine the average level of inventory c. Determine the reorder point d. Compute the Total Cost of Inventory (another formula needed)

Reference no: EM131188765

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Compute the total cost of inventory : Joe's Bar (not its real name) uses 800 kegs of adult beverages per year on a continuous basis (assume 365 days of operations per year). Determine the reorder point d. Compute the Total Cost of Inventory.

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