Ada is running a store to sell soft-drink and snacks. For one soft-drink, given the daily demand is 32bottles with operating 360 days per year. The ordering cost is $10 per order and annual holding cost is $1per bottle. Lead time is 10 days.Determine the optimal order sizeDetermine the reorder pointDetermine the safety stockDetermine total annual inventory costNow, daily demand and lead time may vary. Average daily demand is 32 bottles and its standard deviationis 6 bottles.Average lead time is 10 days and its standard deviation is 4 days.Determine the reorder pointDetermine the safety stock with 95% service level

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Ada is running a store to sell soft-drink and snacks. For one soft-drink, given the daily demand is 3: bottles with operating 360 days per year. The ordering cost is $10 per order and annual holding co- per bottle. Lead time is 10 days. Determine the optimal order size etermine the reorder point etermine the safety stock

Ada is running a store to sell soft-drink and snacks. For one soft-drink, given the daily demand is 3: bottles with operating 360 days per year. The ordering cost is $10 per order and annual holding co- per bottle. Lead time is 10 days. Determine the optimal order size etermine the reorder point etermine the safety stock

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 17P

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