The Monster Deli sells imported gourmet salamis at a constant rate of 223 cases per month. Salamis cost $12 per case. Annual holding cost is 20% of the procurement price and a fixed ordering cost is $100. The supply lead time is 2 months.
If Monster Deli were to order 500 cases at a time, what would be the length of an order cycle (in months)? Round answer to one decimal place.
If Monster Deli were to order 500 cases at a time, what would be the average inventory level?
What is the economic order quantity of the gourmet salamis? Round to the nearest integer.
What is the annual inventory holding cost when Monster Deli orders EOQ?
What is the optimal reorder point?