Question

Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual...

Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3750 cases. A case of the soft drink costs R&B $2. Ordering costs are $21 per order and holding costs are 24% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy:

  1. Economic order quantity. If required, round your answer to two decimal places.

    Q*=
  2. Reorder point.

    r =
  3. Cycle time. If required, round your answer to two decimal places.

    T =  days
  4. Total annual cost. If required, round your answer to two decimal places.

    TC = $
Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
R & B beverage company has a soft drink product that has a constant annual demand...
R & B beverage company has a soft drink product that has a constant annual demand rate of 3600 cases. A case of the soft drink costs R & B $3. Ordering costs are $20 per order and holding costs are 25% of the value of the inventory. R & B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy: a. Economic order quantity b. Reorder point d....
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual...
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 4000 cases. A case of the soft drink costs R&B $3. Ordering costs are $18 per order and holding costs are 23% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy
1.       For product M, a firm has an annual holding cost that is 25% of the...
1.       For product M, a firm has an annual holding cost that is 25% of the item cost, an ordering cost of $10 per order, and annual demand of 1560 units. If ordering at least 85 units, the price per unit is $16; if ordering at least 95 units, the price per unit is $14.5. Lead time is 5 days. The firm operates 260 days. a)     Determine the most cost-effective ordering quantity b)     What is the total cost for the...
Wildhorse Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50...
Wildhorse Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $1,850,000 Selling expenses—variable $95,000 Direct materials 470,000 Selling expenses—fixed 54,000 Direct labor 340,000 Administrative expenses—variable 30,000 Manufacturing overhead—variable 360,000 Administrative expenses—fixed 109,000 Manufacturing overhead—fixed 170,000 Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places,...
A certain beverage company provides a complete line of beer, wine, and soft drink products for...
A certain beverage company provides a complete line of beer, wine, and soft drink products for distribution through retail outlets in central Iowa. Unit price data for 2011 and 2014 and quantities sold in cases for 2011 follow. Use 2011 as the base period. Unit Price ($) Item 2011 Quantity (cases) 2011 2014 Beer 40,000 19.50 20.15 Wine 5,000 100.00 116.00 Soft drink 70,000 8.00 8.80 Compute the price relatives for this company's products. (Round your answers to two decimal...
Need answers ASAP!!!!!! Joe​ Henry's machine shop uses 2 comma 550 brackets during the course of...
Need answers ASAP!!!!!! Joe​ Henry's machine shop uses 2 comma 550 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the​ brackets: Annual demand 2 comma 550 Holding cost per bracket per year $ 1.60 Order cost per order $ 18.75 Lead time 2 days Working days per year 250 ​a) What is the​ EOQ? units ​(round your response to two decimal​ places). ​b) What is...
Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the...
Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 305 per day, and it uses these subcomponents at a rate of 12,200 per year (of 250 working days). Holding costs are $33 per item per year, and ordering costs are $29 per order. a) What is the economic production quantity? (round your response to two decimal? places). b) How many production runs per year will be...
16) For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation...
16) For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly. A new purchasing agent has been hired by the company who wants to start using the economic-order-quantity method and its supporting decision elements. She has gathered the following information: Annual demand in units 250 Days used per year 250 Lead time, in days 10 Ordering costs $100 Annual unit carrying costs $20 Required: Determine the...
Jorge company bottles and distributes B-lite, a diet soft drink. The beverage is sold for 50...
Jorge company bottles and distributes B-lite, a diet soft drink. The beverage is sold for 50 cents per 16 ounce bottle to retailers. For the year 2020, management estimates the following revenues and costs. Sales $1,800,000 Direct materials 430,000 Direct labor 360,000 Manufacturing overhead- variable 380,000 Manufacturing overhead -fixed 280,000    Selling expenses - variable $70,000 Selling expenses - fixed 65,000 Administrative expenses - variable 20,000 Administrative expenses - fixed 60,000 (a) Prepare a CVP income statement for 2020 based...
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected...
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7300 copies. The cost of one copy of the book is $13.5. The holding cost is based on an 18% annual rate, and production setup costs are $130 per setup. The equipment on which the book is produced has an annual production volume of 26500 copies. Wilson has 250 working days per year, and the lead...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT