roblem 10-01 (Algorithmic) uppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,700 cases. A case of the soft drink costs R&B $4. rdering costs are $20 per order and holding costs are 23% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the ollowing aspects of the inventory policy: . Economic order quantity. If required, round your answer to two decimal places. Q* = ». Reorder point. If required, round your answer to the nearest whole number. r= . Cycle time. If required, round your answer to two decimal places. T= days 1. Total annual cost. If required, round your answer to two decimal places. TC = $
roblem 10-01 (Algorithmic) uppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,700 cases. A case of the soft drink costs R&B $4. rdering costs are $20 per order and holding costs are 23% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the ollowing aspects of the inventory policy: . Economic order quantity. If required, round your answer to two decimal places. Q* = ». Reorder point. If required, round your answer to the nearest whole number. r= . Cycle time. If required, round your answer to two decimal places. T= days 1. Total annual cost. If required, round your answer to two decimal places. TC = $
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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Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,700 cases. A case of the soft drink costs R&B $4. Ordering costs are $20 per order and holding costs are 23% 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
![**Problem 10-01 (Algorithmic)**
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,700 cases. A case of the soft drink costs R&B $4. Ordering costs are $20 per order and holding costs are 23% 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:
a. Economic order quantity. If required, round your answer to two decimal places.
\[ Q^* = \_\_\_\_\_ \]
b. Reorder point. If required, round your answer to the nearest whole number.
\[ r = \_\_\_\_\_ \]
c. Cycle time. If required, round your answer to two decimal places.
\[ T = \_\_\_\_\_ \text{ days} \]
d. Total annual cost. If required, round your answer to two decimal places.
\[ TC = \$\_\_\_\_\_ \]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F399a0712-cc92-47dc-ac76-17e7cfe211f4%2F135d9534-abcf-4a24-a20d-547016d5136a%2Fjhkpt6r_processed.png&w=3840&q=75)
Transcribed Image Text:**Problem 10-01 (Algorithmic)**
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,700 cases. A case of the soft drink costs R&B $4. Ordering costs are $20 per order and holding costs are 23% 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:
a. Economic order quantity. If required, round your answer to two decimal places.
\[ Q^* = \_\_\_\_\_ \]
b. Reorder point. If required, round your answer to the nearest whole number.
\[ r = \_\_\_\_\_ \]
c. Cycle time. If required, round your answer to two decimal places.
\[ T = \_\_\_\_\_ \text{ days} \]
d. Total annual cost. If required, round your answer to two decimal places.
\[ TC = \$\_\_\_\_\_ \]
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