A bakery buys flour in 25-pound bags the bakery uses 1215, Ask an Expert

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A bakery buys flour in 25-pound bags. the bakery uses 1,215 bags a year. ordering cost is $10 per order. annual carrying cost is $75 per bag.

a. what is the average number of bags on hand?

b. how many orders per year will there be?

c. compute the total costs of ordering and carrying flour

d. if holding costs were to increase by $9 per year, how much would that affect the minimum total annual cost?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91249604

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