question archive What is the economic order quantity for Stein beer, if the manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day
What is the economic order quantity for Stein beer, if the manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day
Subject:EconomicsPrice:3.87 Bought7
What is the economic order quantity for Stein beer, if the manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer.
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Answer:
Number of cases used up in a day = 4
Number of six - packs in a case = 4
Hence total number of six-packs sold in a day = 4*4 = 16
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