202328 Inventory Policy Inventory Policy Please see the attached file. Thanks for using Brainmass! Suppose that R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3600 cases.
Suppose that the R&B Beverage Company has a soft drink product that has a constant annual demand rate of 3600 cases. A case of the soft drink costs R&B $3.
It is become one of the top brands of the world and it is the world's No. 1 soft-drink company. Let us take an example for Coca-Cola Suppose Coca Cola wants to launch a new flavor of soft drink which will be priced at $1.5.
b) Suppose the company believes that the demand would be approximately 6,000,000 cans per year.
= 60%, annual demand = 3600 units and ordering cost = $15 per order, the EOQ is: D =Total demand= 3600 units per year S = ordering cost=$15 per order H = holding costs=$25*60%=$15 per unit per year P = Item purchase price = $25.00 per unit
This goal is one that has been evident in the company for a number of years. Their secondary goals include keeping costs low while providing quality products to their customers, and to increase consumer per capita growth.
It worked under the assumption that there are new consumers coming of age every day and if one stops marketing to the newest consumers, one will have a shrinking base of established consumers of one's product.
A declining gross profit margin depicts that the costs of production are on the rise as compared to the selling price per unit in the market.
Although these outlets captured most of the soft drink profitability in their channel, they accounted for less than 20% of total soft drink sales.
Each bag costs Green Thumb $4, inventory carrying costs are 20 percent, and the cost of placing an order with the firm's supplier is $25. A) What is the economic ordering quantity? B) What is the maximum inventory of fertilizer?