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One bakery still buys flour in 25-pound bags. They use an average of 6100 bags a year. The production step that uses these bags use
One bakery still buys flour in 25-pound bags. They use an average of 6100 bags a year. The production step that uses these bags use 32 bags per day while the usage is 20 bags per day. It costs $10.00 to configure the machines for each run. Annual carrying costs are $3.25 per bag.
What will be their average number of bags on hand if they order the EOQ bags in each order? (Keep up to two decimal places in your answer)
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