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 costs 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:

Advanced Engineering Mathematics
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ISBN:9780470458365
Author:Erwin Kreyszig
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Chapter2: Second-order Linear Odes
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Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,600 cases. A case of the soft drink costs R&B $2. Ordering costs are $22 per order and holding costs 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* = fill in the blank 1

  • Reorder point. If required, round your answer to the nearest whole number.

    r = fill in the blank 2

  • Cycle time. If required, round your answer to two decimal places.

    T = fill in the blank 3 days

  • Total annual cost. If required, round your answer to two decimal places.

    TC = $  fill in the blank 4

 

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