Harrisburg Company uses quantitative models for inventory control. For canned syrup, the annual demand is 9,000 cases. The supplier is 500 miles away, and it usually takes 4 days to get an order filled. The average order costs
$18 to process and the carrying cost per case is $42 per year. The store is open 300 days a year.
Required:
a. Determine the economic order quantity.
b. Determine the reorder point if a safety stock of 24 cases is desired.

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The Answer of Harrisburg Company uses quantitative models for inventory control. For canned syrup, the annual demand is 9,000 cases. The supplier is 500 miles away, and it usually takes 4 days to get an order filled. The average order costs
$18 to process and the carrying cost per case is $42 per year. The store is open 300 days a year.
Required:
a. Determine the economic order quantity.
b. Determine the reorder point if a safety stock of 24 cases is desired.

Harrisburg Company Uses Quantitative Models for Inventory Control