Find the economic order quantity and total annual cost

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Super K Beverage Company distributes a soft drink that has a constant annual demand rate of 4,600 cases. A 12-pack case of the soft drink costs Super K $2.25. Ordering costs are $20 per order, and inventoryholding costs are charged at 25 percent of the cost per unit. There are 250 working days per year, and the lead time is 4 days. Find the economic order quantity and total annual cost, and compute the reorder point. Also what is the order decision rule: Place a new order for _____ cases when the inventory position drops to or is past the reorder point of _____ cases.

Reference no: EM131626837

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