What would your annual inventory costs be

Reference no: EM133343912

Case: You are the manager of the UT Coop. You sell stuffed Bevos at a rate of 50 per day with a standard deviation of demand of 30 per day. You sell them for $15 and each Bevo costs you $5.00. Shipping costs from you supplier are $10 per order and it costs you approximately $15 to fill out the order form. Because of your location your holding rate is 30%. Note that you are open 10 hours/day, 7 days/week, 365 days/year.

Question 1: What quantity would you order to minimize your inventory costs?

Question 2: If you ordered 2,000 Bevos each time, what would your annual inventory costs be? (you do not need to include cost to purchase the Bevos since this is constant regardless of order size)

Reference no: EM133343912

Questions Cloud

Provide examples from the news of monopolies and firms : Provide examples from the news of monopolies and firms in monopolistic competition markets. Compare and contrast the two types of markets.

What does it mean that she is a 60-pack-year smoker : What does it mean that she is a 60-pack-year smoker? What is the definition of exacerbation?? Are her vital signs in normal range? Are her ABG's

Would the united states government be required : Would the United States government be required to have a balanced budget? What are the long-term implications of continued government indebtedness

Current state of pakistan economy and how to stabilize : Current state of Pakistan economy and how to stabilize. -What action you recommend to increase economic growth and productivity of Pakistan and areas

What would your annual inventory costs be : what would your annual inventory costs be? (you do not need to include cost to purchase the Bevos since this is constant regardless of order size)

What is a person knowledge regarding essential oils : What is a person's knowledge regarding essential oils and report the details? What other complimentary methods, if any, do they also use?

What are the five strategies that you can employ to deal : When working in community services and/or healthcare contexts, what are the five stressors you may encounter? In the context of working in community services

What are the conditional demand functions : What are the conditional demand functions and What is minimum efficiency scale?( the minimum point, in terms of y, of the LRAC(y)

Nutritional and health course from biggest little farm : What would not work well in a Nutritional and health course from The Biggest Little Farm.

User Account

All Pages