Question

(URGENT) A bakery buys flour in 20-KG bags. The bakery uses 1,600 bags a year. Ordering...

(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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