Problem 10-01 (Algorithmic) Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,600 cases. A case of the soft drink costs R&B $2. Ordering costs are $22 per order and holding cos are 26% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy: . Economic order quantity. If required, round your answer to two decimal places. Q* = 551.9 X . Reorder point. If required, round your answer to the nearest whole number. r = 72 V . Cycle time. If required, round your answer to two decimal places. T = 38.3 x days 1. Total annual cost. If required, round your answer to two decimal places. TC = $

Problem 10-01 (Algorithmic) Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,600 cases. A case of the soft drink costs R&B $2. Ordering costs are $22 per order and holding cos are 26% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy: . Economic order quantity. If required, round your answer to two decimal places. Q* = 551.9 X . Reorder point. If required, round your answer to the nearest whole number. r = 72 V . Cycle time. If required, round your answer to two decimal places. T = 38.3 x days 1. Total annual cost. If required, round your answer to two decimal places. TC = $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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