Determine how often the supermarket should order alma cola

Reference no: EM13394227

The demand for Alma Cola soft drink at Daisy Supermarket is 200 bottles every week. The setup cost for placing an order to replenish inventory is $12. The order is delivered by the Alma Cola supplier, which, for the cost of transportation, charges $0.05/bottle. That increases the cost of the drink to $1.15/bottle. The drink loses its freshness while stored at Daisy Supermarket. The annual holding cost is $2.3/bottle.

Determine how often the supermarket should order Alma Cola and what the size of each order should be. Explain how you have used the formula with the data given.

Reference no: EM13394227

Questions Cloud

How could administrative technical and physical controls : 1. how could administrative technical and physical controls introduce a false sense of security?2. what are the

Golden sales has bought 135000 in fixed assets on january : golden sales has bought 135000 in fixed assets on january 1st associated with sales equipment. the residual value of

Compare and contrast the strengths of the various : compare and contrast the strengths of the various organizational structures and explain which you feel you would work

Compute the npv if the minimum rate of return desired is 18 : the jackson city park department is considering the purchase of a new more efficient pool heater for its moorcroft

Determine how often the supermarket should order alma cola : the demand for alma cola soft drink at daisy supermarket is 200 bottles every week. the setup cost for placing an order

Explain why does the poq model distinct from the eoq model : the eoq model is based on a mathematical derivation with which you would not be expected to be familiar that achieves a

How have the ideas of constant improvement processes such : 1. how have the ideas of constant improvement processes such as tqm six sigma and other improvement processes affected

Your finance text book sold 52000 copies in its first year : 1.your finance text book sold 52000 copies in its first year. the publishing company expects the sales to grow at a

Find the price of a margarita what would be change in price : nancy is consuming her optimal consumption bundle of burritos and margaritas. the marginal utility of her last burrito

User Account

All Pages