Alma cola soft drink | Business & Finance homework help
The demand for Alma Cola soft drink at Daisy Supermarket is 200 bottles every week. The setup cost for placing an order to replenish inventory is $12. The order is delivered by the Alma Cola supplier, which, for the cost of transportation, charges $0.05/bottle. That increases the cost of the drink to $1.15/bottle. The drink loses its freshness while stored at Daisy Supermarket. The annual holding cost is $2.3/bottle.
Determine how often the supermarket should order Alma Cola and what the size of each order should be. Explain how you have used the formula with the data given.