Green Thumb Garden Centers sells 240000 bags of lawn fertilizer annually. The optimal safety stock (which is

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Green Thumb Garden Centers sells 240000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand innitially) is 1,200 bags. Each bag costs Green Thumb $4, inventory carrying cost are 20 percent, and the cost of placing an order with its supplier is $25.
(a). what is the economic ordering quantity (EOQ)?
(b). What is the total inventory cost at the EOQ level?
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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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