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2 . Kroger s grocery store is doing an inventory analysis for a popular cereal which has a demand of 2 0 , 0 0
Krogers grocery store is doing an inventory analysis for a popular cereal which has a demand of units per year. The cost of each box of cereal is $ and the inventory carrying cost is $ per unit per year. The average ordering cost is $ per order. It takes about days for an order to arrive. The store is open days per year.
a What is the EOQ?
b What is the average inventory?
c What is the optimal number of orders per year.
d What is the optimal number of days between orders.
e What is the ordering and holding cost per year?
f What is the total inventory cost including the cost of the $ units per year?
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