A hypermarket store sells a popular soft drink with a constant annual demand of 24,000 cases. While placing an order, the hypermarket incurs a cost of $25 per order and receives its ordered cases instantaneously. Holding costs are $4.80 per case per year. The hypermarket is open six (6) days a week and 52 weeks a year. Identify the following features of the inventory policy. answer the following 1.The optimal order quantity per order 2.The optimal number of orders per year 3.The time between the orders in days 4.The minimum total annual inventory costs 5.The reorder point if the supplier needs a lead time of nine (9) days to supply the order instead of instantaneous delivery.

A hypermarket store sells a popular soft drink with a constant annual demand of 24,000 cases. While placing an order, the hypermarket incurs a cost of $25 per order and receives its ordered cases instantaneously. Holding costs are $4.80 per case per year. The hypermarket is open six (6) days a week and 52 weeks a year. Identify the following features of the inventory policy. answer the following 1.The optimal order quantity per order 2.The optimal number of orders per year 3.The time between the orders in days 4.The minimum total annual inventory costs 5.The reorder point if the supplier needs a lead time of nine (9) days to supply the order instead of instantaneous delivery.

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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