(URGENT)
A bakery buys flour in 20-KG bags. The bakery uses 1,600 bags a year. Ordering cost is Rs.10 per order. Annual carrying cost is Rs.75 per bag.
a. Determine the economic order quantity. [2 Marks]
b. What is the average number of bags on hand? [1 Mark]
c. How many orders per year will there be? [1 Mark]
d. Compute the total cost of ordering and carrying flour. [1 Mark]
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