Nashville Company manufactures candy.The company buys chocolate used in the candy in 10-kilogram boxes that cost $10 each.The company uses 30,000 of the boxes per year,and usage occurs evenly throughout the year.
The average cost to carry a 10-kilogram box in inventory per year is $4,and the cost to place an order is $3.
a.Determine the economic order quantity for the chocolate in terms of 10- kilogram boxes.
b.If the company works 250 days per year,on the average,how many boxes of chocolate are used per working day?
c.If the lead time for an order is normally eight working days,determine the reorder point for chocolate.
d.If 50 boxes of chocolate are carried as safety stock,determine the reorder point for the chocolate.

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The Answer of Nashville Company manufactures candy.The company buys chocolate used in the candy in 10-kilogram boxes that cost $10 each.The company uses 30,000 of the boxes per year,and usage occurs evenly throughout the year.
The average cost to carry a 10-kilogram box in inventory per year is $4,and the cost to place an order is $3.
a.Determine the economic order quantity for the chocolate in terms of 10- kilogram boxes.
b.If the company works 250 days per year,on the average,how many boxes of chocolate are used per working day?
c.If the lead time for an order is normally eight working days,determine the reorder point for chocolate.
d.If 50 boxes of chocolate are carried as safety stock,determine the reorder point for the chocolate.

Nashville Company Manufactures Candy