The manager of the Quick Stop Corner Convenience Store (which never closes)sells four cases of Stein beer each day.Order costs are $20.00 per order,and Stein beer costs $8.00 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 a Stein beer case. 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

Question

Quizplus · Accepted Answer

The length of an order cycle is the time between orders. If the manager orders 16 cases at a time and sells 4 cases per day, it would take 4 days to sell all 16 cases. Therefore, the order cycle length is 4 days.

The Manager of the Quick Stop Corner Convenience Store (Which