Grocery store replenishes its inventory of cook cookies

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Reference no: EM131752958

A grocery store replenishes its inventory of cook cookies using EOQ model. demand for the cookie is constant, at 100 packs per week. each pack of cookies cost $20. The annual holding cost is 20% of the cost of purchase. The fixed cost of placing an order is $100. Assume there are 50 weeks a year.

1) EOQ=

Suppose the manager use EOQ as the order size, answer the following questions.

2) The annual holding cost=

3) The total ordering costs per year=

4) The time between two orders= __________weeks

Reference no: EM131752958

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