The Olde Town Microbrewery makes Townside beer, which it bottles and sells in its adjoining restaurant...
The Olde Town Microbrewery makes Townside beer, which it bottles and sells in its adjoining restaurant and by the case. It costs $1700 to set up, brew, and bottle a batch of the beer. The annual cost to store the beer in inventory is $1.25 per bottle. The annual demand for the beer is 21,000 bottles and the brewery has the capacity to produce 30,000 bottles annually.
a) What is the optimal order quantity? Round to 2 decimal places.
b) What is the total annual inventory cost? Round to 2 decimal places.
c) What is the number of production runs per year? Round to 2 decimal places.
d) What is the maximum inventory level? Round to 2 decimal places.
e) If the microbrewery has only enough storage space to hold a maximum of 2500 bottles of beer in inventory, what will be the new total inventory costs? Round to 2 decimal places.
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The Olde Town Microbrewery makes Townside beer, which it bottles
and sells in its adjoining restaurant...
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