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Case Study:
The ePoint Store stocks paint in its warehouse and sells it online on its Internet Web site. The store stocks several brands of paint; however, its biggest seller is Sharman-Wilson Iron coat paint. The Company wants to determine the following:
1. Optimal order size and total inventory cost for Iron coat paint given an estimated annual demand of 10,000 gallons of paint, an annual carrying cost of € 0.75 per gallon, and an ordering cost of €150 per day.
2. The number of orders that will be made annually and the time between orders (Order cycle).
The forecasted demand for fudge for the next four months is 140, 160, 90 and 70 pounds. A) What is the recommended production rate if a level strategy is adopted with no back order
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