The complete Gardener is deciding on the economic order quantity for two brands of lawn fertilizer:

“Super–Grow” and “Natives Own”. The following information is collected:

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

Transcribed Image Text:

Fertilizer Super-Grow Natives Own Annual demand Relevant ordering cost per Rs. 1,200 purchase order 2,000 bags 1,280 bags Rs. 1,400 Annual relevant carrying Rs. 480 Rs. 560 cost per bag