The manager of the quick stop corner convenience store


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 five percent of the cost of the beer.

1. At what point should he reorder Stein beer?

A. 0 cases remaining

B. 4 cases remaining

C. 12 cases remaining

D. 16 cases remaining

E. 20 cases remaining

2. If he were to order 16 cases of Stein beer at a time, what would be the length of an order cycle?

A. 0.25 days

B. 3 days

C. 1 day

D. 4 days

E. 20 days

3. If he were to order 16 cases of Stein beer at a time, what would be the average inventory level?

A. 4 cases

B. 12 cases

C. 8 cases

D. 20 cases

E. 16 cases

4. If he were to order 16 cases of Stein beer at a time, what would be the daily total inventory costs, EXCLUDING the cost of the beer?

A. $2.00

B. $4.00

C. $1.28

D. $3.28

E. $2.56

5. What is the economic order quantity for Stein beer?

A. 8 cases

B. 11 cases

C. 14 cases

D. 20 cases

Request for Solution File

Ask an Expert for Answer!!
Operation Management: The manager of the quick stop corner convenience store
Reference No:- TGS01031088

Expected delivery within 24 Hours