+ Ch 12 Problem Homework Question 6 of 7 -/15 View Policies Current Attempt in Progress Healthy Plants Ltd. (HP produces its premium plant food in 70 pound bags. Demand for the product is 168.000 pounds per week HP operates fifty weeks per year and can produce 280,000 pounds per week. The setup cost is $210 and the annual holding cost rate is $0.5 per bag Currently, HP produces its premium plant food in batches of 990,000 pounds. Determine what will happen if HP uses the economic production quantity model to establish the quantity produced each cycle (a) Calculate the economic production quantity (EPO) (Round your answers to decimal places, eg 125. Do not round your intermediate computations.) pounds or bags (b) Calculate the maximum inventory level using the EPQ (Round your answers to decimal places, eg, 125. Do not round your Intermediate computations.) pounds or bags Ye Calculate the total annual cost of using the EPQ (Round your answers to 2 decimal places, c. 15.25. Do not round your intermediate + Ch 12 Problem Homework Question 6 of 7 > ./1 (b) Calculate the maximum inventory level using the EPQ (Round your answers to decimal places, eg. 125. Do not round your intermediate computations pounds or bags (c) Calculate the total annual cost of using the EPQ (Round your answers to 2 decimal places, eg, 15.25. Do not round your intermediate computations) $ (d) Calculate the penalty cost HP is incurring with its current policy. Total annual cost under current policy is $3,196. (Round your answers to 2 decimal places, eg. 15.25. Do not round your intermediate computations.) $ e Textbook and Media Save for Later Attempts:0 of 1 used Submit