Assignment:
A retailer of auto parts with three retail store locations is reviewing product demand and inventory management parameters for its one gallon size containers of antifreeze. The store carries three brands of antifreeze in this size. Inventory is split between storage rooms at each store location and a central warehouse that delivers to all three retail locations. Antifreeze One Gallon Store 1 avg. cases/yr Store 2 avg. cases/yr Store 3 avg. cases/yr Brand A 90 110 100 Brand B 30 45 35 Brand C 60 70 50 Brand A is purchased at $7.50 per case with an administrative fixed ordering cost of $5 per order. Brand B is purchased at $8.50 per case with an administrative fixed ordering cost of $6 per order. Brand C is purchased at $9.00 per case with an administrative fixed ordering cost of $3 per order. Storage, transportation and insurance costs (inventory holding costs) equate to 20% applicable to each brand of antifreeze. To be calculated Please calculate the Economic Order Quantity (EOQ) for each brand of antifreeze. What is the cost associated with the EOQ for each brand? What is the Time Between Orders (expressed as number of days) for each brand?