The Gentry Garden center sells 10,000 bags of lawn fertilizer annually. Each bag costs the firm...
The Gentry Garden center sells 10,000 bags of lawn fertilizer annually. Each bag costs the firm $2.00, inventory carrying cost is 20%, and the cost of placing an order with the supplier is $20. Answer the following questions: 1) What is the firm’s Economic Ordering Quantity? 2) What is the firm’s average inventory? 3) How many times must the firm order inventory in a year?
Homework Answers
1
Economic order quantity = ((2*annual demand quantity* fixed cost per order)/ annual holding cost per unit)^(0.5)
=((2*10000*20/(2*0.2)))^0.5
=1000
2
Average inventory level = EOQ/2 = 1000/2 = 500
3
Number of orders = sales/EOQ = 10000/1000=10
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The Gentry Garden center sells 10,000 bags of lawn fertilizer
annually. Each bag costs the firm...
I need help to solve for the correct answers. Thank you Attempts: I keep the Highest:...
I need help to solve for the correct answers. Thank
you
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I need help to solve for the correct answers. Thank
you
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