Compute the economic order quantity

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Reference no: EM13103916

A large bakery buys flour in 25-pound bags. The bakery uses an average of 4,800 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag.

a.
Determine the economic order quantity. (Do not round intermediate calculations. Round your final answer to the nearest whole number.)
b.
What is the average number of bags on hand?(Round your answer to the nearest whole number.)
c.
How many orders per year will there be? (Round your final answer to the nearest whole number.)

Reference no: EM13103916

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