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 $0.80 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 5 percent of the cost of the beer.
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
Correct Answer:
Verified
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