1 the drebb root beer company distributes their soft drink, Ask an Expert

Management Studies

1. The Drebb Root Beer Company distributes their soft drink at a constant demand rate of 22,500 cases per year. A case cost the company $8.75 with an ordering cost of $18 per order. The inventory holding costs are charged at 14 percent of the cost per unit. The lead time is 7 days with 312 working days per year.

Determine the EOQ, the Total Annual Cost and the Reorder Point. Show all your work.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91624809

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