Question

**Please help me understand**

Ollah's Organic Pet Shop sells about 4,000 bags of free-range dog biscuits every year. The fixed ordering cost is $15, and the cost of holding a bag in inventory for a year is $2.00 Click the icon to view the table of z values. a. What is the economic order quantity for the biscuits? The EOQ is (Enter your response rounded to the nearest whole number.) b. Suppose Ollah decides to order 200 bags at a time. What would the total ordering and holding costs for the year be? (For this problem, don't consider safety stock when calculating holding costs.) The total ordering and holding costs are $ (Enter your response rounded to the nearest dollar.) 0 Reference z value 0.84 1.28 1.65 Associated service level 80% 90% 95% 99% 99.9% 2.33 3.08

Answer 1

p9 NO-1 &ਘ Given » Iganic pet shop sells 4000 > fixed Bldering Cost $ 15 > inventbly year $ 2.00 for beecupts Economic and quantity Fog - 5203 whae, D=4000 3 =15 Sub, 2x44000x15 100 000 = Qlite. 94,89 too = 34.9489

-10 94 Q = 200 Total Cost - oldering cost + Holding cost] Bobing Cost Holding Cost @s = (a)in whae, Q = 200 D = 4000 Q = 200 s = 15 in = 2 + ( ).15 +000). 2000 9 .15 + 20*15 + 100 x 2 300 + 200 $ = 500 Total Cast 500 l