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5 . A large bakery buys flour in 2 5 kg bags. The bakery uses an average of 4 , 8 6 0 bags a

5. A large bakery buys flour in 25 kg bags. The bakery uses an average of 4,860 bags a year. Preparing an order, receiving shipment, and paying the invoice costs $10 per order. Annual holding cost is $5 per flour bag
a. Determine the economic order quantity.
b. What is the average number of bags on hand (ie., average cycle inventory) if EOQ is used?
e. How many orders per year will there be if EOQ is used?
d. Calculate the total annual cost of ordering and holding flour for EOQ

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