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).