Find the order quantity that will minimize costs

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The R & B Beverage Company is a distributer of beer, wine, and soft drink products. It is opened 250 days per year. It has a soft drink product that shows a constant annual demand rate of 3600 cases. A case of the soft drink costs R & B $3. The cost of requisitioning an order is $32 . And holding costs are $1 for holding one case for one year. The lead time is 5 days.

a. Find the order quantity that will minimize costs.

b. Find the total annual cost using the order quantity found in (a)

Reference no: EM132292123

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