Determine how often the supermarket should order alma cola

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Reference no: EM13394227

The demand for Alma Cola soft drink at Daisy Supermarket is 200 bottles every week. The setup cost for placing an order to replenish inventory is $12. The order is delivered by the Alma Cola supplier, which, for the cost of transportation, charges $0.05/bottle. That increases the cost of the drink to $1.15/bottle. The drink loses its freshness while stored at Daisy Supermarket. The annual holding cost is $2.3/bottle.

Determine how often the supermarket should order Alma Cola and what the size of each order should be. Explain how you have used the formula with the data given.

Reference no: EM13394227

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