Determine the EOQ-Total Annual Cost and the Reorder Point

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Reference no: EM13904138

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. Verify your results by using the CourseMate Excel free templates.

Reference no: EM13904138

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