Dog Brews, Inc.

Estimating Optimal Inventory Policy

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Input

Please fill in the following values. Click the Estimate button when you are ready.

Product name (e.g., Lab Lager)

Inventory unit (e.g., bottle, case, keg)

Cost per unit (e.g., 8)

Demand per year in units (e.g., 20000)

Cost of placing an order (e.g., 55)

Order lead time in working days (e.g., 4)

(On average, there are 250 working days per year)

Annual holding cost as a percentage of inventory value (e.g., 22)

Estimate