The Deer Valley Farm produces a natural organic fertilizer, which it sells mostly to gardeners and homeowners.
Question:
a. Compute the optimal order size, the maximum inventory level, and the total minimum cost.
b. If the farm can increase production capacity to 360,000 pounds per year, will it reduce total inventory cost?
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Related Book For
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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