The food place supermarket stocks munchkin cookies demand, Ask an Expert

Management Studies

The Food Place Supermarket stocks Munchkin Cookies. Demand for Munchkins is 5000 boxes per year (365 days). It costs the store $80 per order of Munchkins, and it costs $0.50 per box per year to keep the cookies in stock. Once an order for Munchkins is placed, it takes four days to receive the order from a food distributor. Determine the following:

A. Optimal order size

B. Minimum total annual inventory cost

C. Reorder point

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92589354

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