Manufacturing facility to its distribution warehouse

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1. Mary's Flower Boutique needs to ship finished goods from its manufacturing facility to its distribution warehouse. Annual demand for the Flower Boutique is 1,944 flowers. Flower Boutique can ship the flowers via regular parcel service which take 2 days transit time). What is the average annual transportation inventory? (Assume 365 days per year. Calculate your answer to one decimal place.)

2. B&B Beverage Company sells a soft-drink that has a constant annual demand rate of 2,069 cases. It costs B&B $0.6 to hold a case in its warehouse for a year and $18 to process a replenishment order of the soft-drink. What is the economic order quantity (EOQ)? (Calculate your answer to one decimal place.)

Reference no: EM132239029

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