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Ardent Mills, LLC, a flour-milling company, buys wheat germs in drums. Ardent Mills uses 10,000 drums of wheat germs each year. Ordering costs are $8,
Ardent Mills, LLC, a flour-milling company, buys wheat germs in drums. Ardent Mills uses 10,000 drums of wheat germs each year. Ordering costs are $8, and holding costs are $24 per drum per year. Suppose Ardent Mills is open 250 days a year, and its daily demand is estimated at 40 drums. It takes five days for each order of drums to be filled. What is the minimum inventory held in a given EOQ cycle?
options:
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25 bags
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100 bags
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50 bags
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2500 bags
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O bags
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