How will that affect total inventory costs

Assignment Help Operation Management

Reference no: EM131029810

The Olde Town Microbrewery makes Townside beer, which it bottles and sells in its adjoining restaurant and by the case. It costs $1,700 to set up, brew, and bottle a batch of the beer. The annual cost to store the beer in inventory is $1.25 per bottle. The annual demand for the beer is 21,000 bottles and the brewery has the capacity to produce 30,000 bottles annually. If the microbrewery has only enough storage space to hold a maximum of 2,500 bottles of beer in inventory, how will that affect total inventory costs?

Reference no: EM131029810

Questions Cloud

Foundations of business analysis : GSBS6002 - Foundations of Business Analysis, Computers R Us, a computer manufacturer and retailer has recently launched a service and repair division, CompleteCare, for its portable/laptop/notebook computers. This division promises to provide a rapid..

Support of operational-ethical-legal or managerial issue : Students will describe the quantitative mental model to be used in support of an operational, ethical, legal, or managerial issue. Consider the problem of determining how to travel from your home to school or work. There are probably many different r..

Evaluated by the environmental protection agency : You are the administrator of a multispecialty medical group composed o thirty physicians. A hazardous waste disposal site in the community has recently been evaluated by the Environmental Protection Agency (EPA). How would knowledge of five-year surv..

Limited editions and ethical dilemma : Some companies they choose to issue limited quantities for certain products that would not meet the market demand for the purpose to retain value or simply drive the price up. Discuss that ethical dilemma supplying your opinion giving an example.

How will that affect total inventory costs : The Olde Town Microbrewery makes Townside beer, which it bottles and sells in its adjoining restaurant and by the case. It costs $1,700 to set up, brew, and bottle a batch of the beer. The annual cost to store the beer in inventory is $1.25 per bottl..

Most likely utilize a decentralized purchasing system : Provide an example company that would most likely utilize a centralized purchasing system, with two advantages that centralized purchasing provides them. Provide an example company that would most likely utilize a decentralized purchasing system, wit..

Using a grand matrix approach : Using a Grand Matrix approach, what strategies are recommended for a firm that is a weak competitor in a slow-growing market? Elaborate on what these strategies could mean foe a college or university. Response should be at least 200 words in length.

Assigning evaluation and management codes : Evaluation and Management Services What are the most important elements or guidelines to remember before assigning Evaluation and Management codes?.

Manufacturing defect and breach of warranty : Sandra regularly took a particular drug for her acute migraines. After a few years, it was discovered that she had severe liver damage due to overuse of the drug. Sandra claimed that the labeling on the drug did not mention any such complications tho..

User Account

All Pages