Reference no: EM131564204

Question: 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.)