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A bakery buys sugar in 1 5 - pound bags. The bakery uses 5 0 0 0 bags of sugar each year. Carrying costs are
A bakery buys sugar in pound bags. The bakery uses bags of sugar each year. Carrying costs are $ per bag per year. Ordering costs are estimated at $ per order. Assume that the bakery is open days a year and its daily demand is estimated at bags. a what is the minimum inventory held in a given EOQ cycle? b What is the total cost of ordering and carrying sugar?
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