From Chapter 11: Tastee Mart sells Frostee Flakes. Demand…
From Chapter 11: Tastee Mart sells Frostee Flakes. Demand for Frostee Flakes is 500 boxes per week. Tastee Mart has a holding cost of 30 percent and incurs a fixed cost of $100 for each replenishment order it places for Frostee Flakes. Given that cost is $2 per box of Frostee Flakes, what is the optimal replenishment lot size? Assume 52 weeks per year and round to the nearest whole number.