Answer a= Weekly holding cost=
Inventory holding cost h = 0.15*$120/50 =$0.36 /week
Anwer b= EOQ= (2*D*S/H)0.5
In the question, D=45 cases S=$290, H=$0.36
EOQ= (2*45*290/0.36)0.5
EOQ=269.25 cases per order
Q5.12 (Millennium Liquors) Millennium Liquors is a wholesaler of sparkling wines. Their most popular product is...
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THE BIG D COMPANY The Big D Company of Dallas, Texas, was a family owned, conservatively managed company. For over forty years the company enjoyed slow, steady growth in reaching its current employment level of just over 200. All expansions were financed entirely out of earnings. As the company grew, its operating procedures were periodically re-examined and modified to cope with the complex problems that accompany growth. The company developed, manufactured, and sold metering and flow control devices used in...
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