Oliahs organix pet shop sells bags of cedar chips for pet, Ask an Expert

Management Studies

Oliah's organix pet shop sells bags of cedar chips for pet bedding or snacking. THe supplier has offered Oliah the following terms: Order 1-100 bags, and the price is $6 a bag. Order 101 or more bags, and the price is 4.50 a bag. Annual demand is 630 bags, fixed ordering costs are 9$ per order, and the per-bag holding cost is estimated to be around $2 per year. a) what is the EDQ for the bags b) what order quantity will result in the lowest total annual cost to Oliah

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Operation Management, Management Studies

Category:- Operation Management
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