Question
A large bakery buys flour in 50-pound bags. The bakery uses an average of 6,738 bags a year. Preparing an order and receiving a
A large bakery buys flour in 50-pound bags. The bakery uses an average of 6,738 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $13.8 per order. Annual carrying costs are $14.8 per bag. The bakery holds 42 bags of flour in inventory as safety stock. On average, how many bags of flour are in inventory?
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Operations Management
Authors: William J Stevenson
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