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nataly862011 [7]
2 years ago
13

A large bakery buys flour in 25-pound bags. The bakery uses an average of 4200 bags a year. Preparing an order and receiving a s

hipment of flour involves a cost of $10.70 per order. Annual carrying costs are $76 per bag. Determine the EOQ. (Keep two decimal places in your answer)
Business
1 answer:
natta225 [31]2 years ago
8 0

Answer:

34

Explanation:

Annual demand D = 4,200 bags

Ordering cost S = $10.70

Holding cost H = $76

Economic order quantity = \sqrt{2*D*S / H

Economic order quantity = \sqrt{2*4200*$10.70 / $76}

Economic order quantity = \sqrt{89880/76}

Economic order quantity = \sqrt{1182.63}

Economic order quantity = 34.389388

Economic order quantity = 34

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3 years ago
A large-scale bakery is laying out a new production process for its packaged bread, which it sells to several grocery chains. It
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840 breads size oven.

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