What is the order quantity and reorder level

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Joe needs to purchase malt for his micro-brew production. His supplier charges $35 per delivery (no matter how much is delivered) and $1.20 per gallon. Joe's annual holding cost per unit is 35% of the dollar value of the unit. Joe uses 5,000 gallons of malt per week. Assume Joe operates 52 weeks a year and lead time is 2 weeks. What is the order quantity and reorder level?

Reference no: EM131375229

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