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Dog Brews, Inc.

ID: 664134 • Letter: D

Question

Estimating Optimal Inventory
Policy

CONFIDENTIALITY POLICY(CLICK TO SHOW/HIDE)

This Web page is for Dog Brews employees only. It is the intellectual
property of Dog Brews, Inc.

Input

Please fill in the following values. Click the Estimate button
when you are ready.

Product name (e.g., Lab Lager)

Inventory unit (e.g., bottle, case, keg)

Cost per unit (e.g., 8)

Demand per year in units (e.g., 20000)

Cost of placing an order (e.g., 25)

Order lead time in working days (e.g., 4)

(On average, there are 250 working days per year)

Annual holding cost as a percentage of inventory value (e.g., 22)

Estimate

Output

Estimated Optimal Inventory Policy for

Inputs

Cost: per

Demand: per year

Order cost: per order

Order lead time: days

Holding cost: % of inventory value

Results

Optimal order quantity:

Reorder point:

Reorder period: days

The date of analysis:

Explanation / Answer

57f8402c4ef22173da453776715bc8250ecd445c8ded9a58409f959d47ef9c91

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