Find the annual pipeline inventory cost

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Reference no: EM131900376

Question: You work at Fineze, a retailer that sells wine of various quality and prices. Fineze orders two types of wine, Xylo and Yolo, from a France wine distributor. The cost of placing an order is $ 500 and the annual holding cost rate of Fineze is 14.0 %. The lead time is 2 weeks and Fineze only pays for the goods when the shipment arrives at their distribution center. Assume that there are 48 weeks in a year.

The annual demand for the more popular wine variety, Yolo, is also very stable at 31764 bottles. The costs of Yolo is $ 93 per bottle. The cost of placing an order, the annual holding cost rate and the lead time are the same as Xylo, and, again, Fineze only pays for the goods when the shipment arrives at their distribution center.

Based on the exceptionally stable demand, you are assuming that demand is deterministic in your model. What are the annual pipeline inventory, purchase, ordering, average cycle stock costs and average safety stock costs to Fineze for this policy? Round your answer to the closest dollar. Do not include the dollar sign. For example, if you answer is $2.54, answer $3.

Annual pipeline inventory cost?

Annual purchase cost?

Annual ordering cost?

Annual average cycle stock costs?

Annual average safety stock costs?

Reference no: EM131900376

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