A bakery buys flour in 25-pound bags.  The bakery uses 1,215 bags a year.  Ordering costs is $10 per order. Annual carrying cost is $75 per bag.    Determine the economic order quantity (EOQ) What is the average number of gas on hand?

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
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Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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  • A bakery buys flour in 25-pound bags.  The bakery uses 1,215 bags a year.  Ordering costs is $10 per order. Annual carrying cost is $75 per bag. 

 

  1. Determine the economic order quantity (EOQ)
  2. What is the average number of gas on hand?
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