Illustrate what is the economic order quantity for ben

Assignment Help Business Management

Reference no: EM1387103

Q. Gentle Ben's Bar and Restaurant uses 6700 quart bottles of an imported wine each year. The effervescent wine costs $4 per bottle and is served in whole bottles only since it loses its bubbles quickly. Ben figures which it costs $25 each time an order is placed and holding costs are 15 percent of the purchase price. It takes three weeks for an order to arrive. Weekly demand is 150 bottles (closed two weeks a year) with a standard deviation of 30 bottles.

Ben would like to use an inventory system which minimizes inventory cost and will satisfy 95 percent of his customers who order this wine.

a. Illustrate what is the economic order quantity for Ben to order?

b. At illustrate what inventory level should he place an order.

Reference no: EM1387103

Questions Cloud

Continental and analytical philosophy : In brief explain the methods and ideas of continental philosophy. Use one of the thinkers in this tradition as your example. In brief explain the methods and ideas of analytical philosophy. Use one of the thinkers in this tradition as your example.

Analyze the various trends which have had an impact : Analyze the various trends which have had an impact on the OM function and find out which have had the greatest impact overall. Explain your rationale.

Excessive alcohol consumption : Excessive alcohol consumption with increase the ratio of NADH/NAD+. This will directly inhibit which enzyme in the TCA cycle, A three year-old male presents to the emergency room with hypoglycemia

Describe operational-tactical and strategic reporting : Describe operational, tactical and strategic reporting. How do requirements drive reporting system inputs requirements and write down the ramifications of ignoring user requirements.

Illustrate what is the economic order quantity for ben : Ben would like to use an inventory system which minimizes inventory cost and will satisfy 95 percent of his customers who order this wine. Illustrate what is the economic order quantity for Ben to order?

What is the optimal solution : What is the optimal solution? You should be able to determine this by inspection. If the linear program has multiple optimal solutions, identify the optimal solution set

Explain why should new technology be considered : the subsequent questions should be considered when adopting new technology. Please answer these questions by providing concrete decision considerations relative to implementing new technology. Explain why should new technology be considered?

Plotinus pointers : In 300 hundred words or less, discuss why someone would want to sit down to dinner with the great philosopher of Neoplatonism, Plotinus.

Standard deviation for the united state population : For adults 60 years or older, they found a mean daily intake of 721 mg with a standard deviation of 454 mg. Using these values for the mean μ and standard deviation σ for the U.S. population:

User Account

All Pages