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The Gentry Garden Center sells 100,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,500 bags. Each bag
- The Gentry Garden Center sells 100,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,500 bags. Each bag costs the firm $2.00, inventory carrying costs are 15%, and the cost of placing an order with its supplier is $15. (4 pts)
- What is the EOQ?
- What is the maximum inventory of fertilizer?
- What will be the firm's average inventory?
- How often must the company order?
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
