View the step-by-step solution to:

A large bakery buys flour in 25 kg. The bakery uses an average 4,860 bags a year. Preparing an order and receiving the shipment of flour bags...

A large bakery buys flour in 25 kg. The bakery uses an average 4,860 bags a year. Preparing an order and receiving the shipment of flour bags involves a cost of \$10 per order. Annual holding cost is \$5 per flour bag.
a. determine the economic order quality?
b. what is the average number of bags on hand?
c. How many orders per year will there be?
d. calculate the total annual cost of ordering and holding flour?
e. If order cost were to increase by 50% per order, by what percentage would the EOQ change?

Here is the solution... View the full answer

A large bakery buys flour in 25 kg. The bakery uses an average 4,860 bags a year. Preparing an order and receiving the shipment of flour bags involves a cost of \$10 per order. Annual holding cost...

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
• -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents