A large bakery buys sugar in 100 ndash pound bags the, Ask an Expert

Management Studies

A large bakery buys sugar in 100 – pound bags. The bakery uses an average of 1,344 bags per year. Ordering cost is $3 / order. Annual carrying costs are $14 per bag. The bakery operates 280 days per year.

A. Determine the economic order quantity

B. What is the average number of bags on hand?

C. How many orders per year will there be?

D. Compute the total cost of ordering and carrying sugar

E. Determine the number of work-days in an order cycle

F. If lead time is 5 days, calculate ROP

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92473429

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