Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Oct-2001 - Nov-2016

Category > Management Posted 02 Feb 2018 My Price 7.00

Macho Heavy Beer

The local distributor for Macho Heavy Beer is reconsidering its inventory policy now that only kegs will be sold. The sales forecast for next year (200 days) is 600 kegs. The cost to store a keg of Macho in a refrigerated warehouse is approximately $3 per year. Placing an order with the factory costs about $4. The demand for Macho during the 1-day lead time is

a. Recommend an EOQ for Macho Heavy Beer.

b. If orders are placed in carload lots of 200 kegs, the brewery is willing to give the local distributor a $0.25 discount on the wholesale price of each keg. Based on analysis of total variable inventory costs, is this offer attractive?

c. What is the recommended safety stock if Macho decides on an 85 percent service level?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 02 Feb 2018 09:02 PM My Price 7.00

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