The demand for Alma Cola soft drink at Daisy Supermarket is 200 bottles every week. The setup cost for placing an order to replenish inventory is $12. The order is delivered by the Alma Cola supplier, which, for the cost of transportation, charges $0.05/bottle. That increases the cost of the drink to $1.15/bottle. The drink loses its freshness while stored at Daisy Supermarket. The annual holding cost is $2.3/bottle.
Determine how often the supermarket should order Alma Cola and what the size of each order should be. Explain how you have used the formula with the data given.

    • 13 years ago
    BEST SOLUTION ANSWER
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      alma_cola_.xls