MapleSugar Company Uses Quantitative Models for Inventory Control

question 52

Essay

MapleSugar Company uses quantitative models for inventory control.For canned syrup,the annual demand is 8,000 cases.The supplier is 500 kilometres away,and it usually takes three days to get an order filled.The average order costs $16 to process and the carrying cost per case is $40 per year.The business is open 300 days a year.
a.Determine the economic order quantity.
b.Determine the reorder point if a safety stock of 24 cases is desired.

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Definitions:

Maintaining Employees

Strategies and practices aimed at retaining staff and preventing turnover by ensuring job satisfaction and engagement.

Employee Pension Fund

An employee pension fund is a retirement plan funded by contributions from both an employer and its employees, designed to provide financial security for employees in their retirement.

Outside Specialist

An expert brought into an organization to provide insights, advice, or services in a specific field where the existing staff lacks expertise or resources.

HR Department

The department in an organization that is responsible for hiring, training, employee relations, and benefits among other functions related to the workforce.