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A bakery buys flour in 25-pound bags. The bakery uses 2,430 bags a year. Ordering cost is $20 per order. Annual carrying cost is $150
- A bakery buys flour in 25-pound bags. The bakery uses 2,430 bags a year. Ordering cost is $20 per order. Annual carrying cost is $150 per bag.
- Determine the economic order quantity.
- What is the average number of bags on hand?
- How many orders per year will there be?
- Compute the total cost of ordering and carrying flour.
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