How many cases of beer should be in each shipment

Reference no: EM131169149

INVENTORY CONTROL AND PLANNING Lehen Vinters imports a certain brand of beer. The demand, which may be assumed to be uniform, is 800,000 cases/year. The cost of ordering a shipment of beer is $500, and the cost of storing each case of beer for a year is $2. Determine how many cases of beer should be in each shipment if the ordering and storage costs are to be kept at a minimum. (Assume that each shipment of beer arrives just as the previous one has been sold.)

Reference no: EM131169149

Questions Cloud

How many orders will be placed each year : The store pays $80 for each camera, and the cost for holding a camera (mainly due to the opportunity cost incurred in tying up capital in inventory) is $12/year. Assume that the cameras sell at a uniform rate and no shortages are allowed.

How does this differ from muhammed stance : Within the Israeli home, Ben knows from the horrors faced by his parents what can happen when there is not a state of Israel in the world. He thus supports his state and will do anything to defend its claim to this region. How does this differ fro..

Find the dimensions of the least expensive box : The material for the sides of the box costs 20¢/square foot. Find the dimensions of the least expensive box that can be constructed.

How can the world face the challenge of the development : How can the world face the challenge of the development of 3/4 of the world's population without exceeding ecological limits? The First World can make the most difference if political and personal will is strong enough.

How many cases of beer should be in each shipment : Determine how many cases of beer should be in each shipment if the ordering and storage costs are to be kept at a minimum. (Assume that each shipment of beer arrives just as the previous one has been sold.)

Find the radius and height of the cylinder : An open bucket in the form of a right circular cylinder is to be constructed with a capacity of 1 ft3 . Find the radius and height of the cylinder if the amount of material used is minimal.

Find the dimensions of the barrel : The cost/square foot of the material for the side of the barrel is half that of the cost/square foot for the top and bottom. Help him find the dimensions of the barrel that can be constructed at a minimum cost in terms of material used.

What is the maximum volume of such a box : MAXIMIZING THE VOLUME OF A BOX A box with an open top is to be constructed from a square piece of cardboard, 10 in. wide, by cutting out a square from each of the four corners and bending up the sides. What is the maximum volume of such a box?

Calculate the peds for the burbank-oakland : Explain why the fare reduction on the Kansas City-St Louis route may still be a profitable strategy for Southwest.

User Account

All Pages