Suppose that 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 inventory policy.

a. Economic order quantity

b. Reorder point

c. Cycle time

d. Total annual cost

a. Economic order quantity

b. Reorder point

c. Cycle time

d. Total annual cost

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