Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,400 cases. A case of the soft drink costs R&B $3. Ordering costs are $20 per order and holding costs are 25% 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 (round your answer to the nearest integer.) 894 (b) reorder point 68 (c) cycle time (in days) (round your answer to two decimal places.) 65.74 × days (d) total annual cost (in $) (round your answer to two decimal places.) $ 1099.12 x
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,400 cases. A case of the soft drink costs R&B $3. Ordering costs are $20 per order and holding costs are 25% 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 (round your answer to the nearest integer.) 894 (b) reorder point 68 (c) cycle time (in days) (round your answer to two decimal places.) 65.74 × days (d) total annual cost (in $) (round your answer to two decimal places.) $ 1099.12 x
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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![Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,400 cases. A case of the soft drink costs R&B $3. Ordering costs are $20 per order and holding
costs are 25% 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 (round your answer to the nearest integer.)
894
(b) reorder point
68
(c) cycle time (in days) (round your answer to two decimal places.)
65.74
× days
(d) total annual cost (in $) (round your answer to two decimal places.)
$ 1099.12
x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb60d532a-9aac-45a2-a466-49da1bb79676%2F188c5440-d0c1-484d-b9de-4cf79037b6ea%2Fz406m64_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,400 cases. A case of the soft drink costs R&B $3. Ordering costs are $20 per order and holding
costs are 25% 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 (round your answer to the nearest integer.)
894
(b) reorder point
68
(c) cycle time (in days) (round your answer to two decimal places.)
65.74
× days
(d) total annual cost (in $) (round your answer to two decimal places.)
$ 1099.12
x
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