Total annual cost and the reorder point

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Reference no: EM13953990

1. 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.

Reference no: EM13953990

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