Question
Economic Ordering Quantity (EOQ ). The Gentry Garden Center sells 90,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially)
Economic Ordering Quantity (EOQ). The Gentry Garden Center sells 90,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,000 bags. Each bag costs the firm $1.50, inventory carrying costs are 20%, and the cost of placing an order with its supplier is $15.
a. What is the EOQ?
b. What is the maximum inventory of fertilizer?
c. What will be the firms average inventory?
d. How often must the company order?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
7th Edition
0072866578, 9780072866575
