The Gentry Garden Center sells 90,000 bags of lawn fertilizer annually. The optimal safety stock (which...
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The Gentry Garden Center sells 90,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 900 bags. Each bag costs the firm $1.50, inventory carrying cost is 20%, and the cost of placing an order with its supplier is $15. Assume a 365-day year. Do not round intermediate calculations. Round your answers to the nearest whole number. a. What is the Economic Ordering Quantity? bags per order b. What is the maximum inventory of fertilizer? bags c. What will be the firm's average inventory? bags d. How often must the company order? The company must place an order every days. The Gentry Garden Center sells 90,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 900 bags. Each bag costs the firm $1.50, inventory carrying cost is 20%, and the cost of placing an order with its supplier is $15. Assume a 365-day year. Do not round intermediate calculations. Round your answers to the nearest whole number. a. What is the Economic Ordering Quantity? bags per order b. What is the maximum inventory of fertilizer? bags c. What will be the firm's average inventory? bags d. How often must the company order? The company must place an order every days.
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