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A hypermarket store sells a popular soft drink with a constant annual demand of 24,000 cases. While placing an order, the hypermarket incurs a cost of $25 per order and receives its ordered cases instantaneously. Holding costs are $4.80 per case per year. The hypermarket is open six (6) days a week and 52 weeks a year. Identify the following features of the inventory policy.  answer the following  1.The optimal order quantity per order 2.The optimal number of orders per year 3.The time between the orders in days 4.The minimum total annual inventory costs 5.The reorder point if the supplier needs a lead time of nine (9) days to supply the order instead of instantaneous delivery.

A hypermarket store sells a popular soft drink with a constant annual demand of 24,000 cases. While placing an order, the hypermarket incurs a cost of $25 per order and receives its ordered cases instantaneously. Holding costs are $4.80 per case per year. The hypermarket is open six (6) days a week and 52 weeks a year. Identify the following features of the inventory policy.  answer the following  1.The optimal order quantity per order 2.The optimal number of orders per year 3.The time between the orders in days 4.The minimum total annual inventory costs 5.The reorder point if the supplier needs a lead time of nine (9) days to supply the order instead of instantaneous delivery.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A hypermarket store sells a popular soft drink with a constant annual demand of 24,000 cases. While placing an order, the hypermarket incurs a cost of $25 per order and receives its ordered cases instantaneously. Holding costs are $4.80 per case per year. The hypermarket is open six
(6) days a week and 52 weeks a year. Identify the following features of the inventory policy. 

answer the following 


1.The optimal order quantity per order
2.The optimal number of orders per year
3.The time between the orders in days
4.The minimum total annual inventory costs
5.The reorder point if the supplier needs a lead time of nine (9) days to supply the order
instead of instantaneous delivery.

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