Question

The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer.

If he were to order 16 cases of Stein beer at a time, what would be the length of an order cycle?

A. .25 days

B. 3 days

C. 1 day

D. 4 days

E. 20 days

Answer

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