Economic order quantity

1.              Suppose that the R&B Beverage Company has a soft drink product that shows 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 in- ventory policy:

a.             Economic order quantity

b.             Reorder point

c.              Cycle time

d.             Total annual cost