OPERATIONS MANAGEMENT -CONNECT
14th Edition
ISBN: 9781265205751
Author: Stevenson
Publisher: MCG
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Chapter 12, Problem 3P
A bakery buys flours in 25-pound bags. The bakery uses 1,215 bags a year. Ordering cost is $10 per order. Annual carrying cost is $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 flow·.
C. If holding costs were to increase by $9 per year, how much would that affect the minimum total annual cost?
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Chapter 12 Solutions
OPERATIONS MANAGEMENT -CONNECT
Ch. 12.3 - Prob. 1RQCh. 12 - What are the primary reasons for holding...Ch. 12 - What are the requirements for effective inventory...Ch. 12 - Briefly describe each of the costs associated with...Ch. 12 - What potential benefits and risks do RFID tags...Ch. 12 - Prob. 5DRQCh. 12 - Prob. 6DRQCh. 12 - a. List the major assumptions of the EOQ model. b....Ch. 12 - Explain briefly how a higher carrying cost can...Ch. 12 - What is safety stock, and what is its purpose?
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