Economic order quantity, Suppose that the R&B Beverage

Economic order quantity

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Reference no: EM132220394

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 $3. Ordering costs are $20 per order and holding costs are 25% 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:

Economic order quantity. If required, round your answer to two decimal places.

Reorder point

Cycle time. If required, round your answer to two decimal places.

Total annual cost. If required, round your answer to two decimal places.

Reference no: EM132220394

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