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Category > Accounting Posted 20 May 2017 My Price 7.00

A large bakery buys flour in 25-pound bags

 

3.           A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Pre- paring an order and receiving a shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag.

a.    Determine the economic order quantity.

b.   What is the average number of bags on hand?

c.    How many orders per year will there be?

d.    Compute the total cost of ordering and carrying flour.

e.    If holding costs were to increase by $9 per year, how much would that affect the minimum total annual cost?

 

 
 

Answers

Alpha Geek
(8)
Status NEW Posted 20 May 2017 07:05 AM My Price 7.00

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