The Complete Gardener is deciding on the economic order quantity for two brands of lawn fertilizer: Super Grow and Nature's Own. The following information is collected.

Required:
(i) Computer EOQ for Super Grow and Nature's Own.
(ii) For the EOQ, what is the sum of the total annual relevant ordering costs and total annual relevant costs for Super Grow and Nature's Own?
(iii) For the EOQ, compute the number of deliveries per year for Super Grow and Nature's Own.

Transcribed Image Text:

Annual Demand Relevant ordering cost per purchase order Annual relevant carrying cost per bag Fertilizer Super Grow 2,000 Bags Rs. 1,200 Rs. 480 Nature's Own 1,280 Bags Rs. 1,400 Rs. 650