A large bakery buys flour in 50-pound bags. The bakery uses an average of 6,738 bags...

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A large bakery buys flour in 50-pound bags. The bakery uses an average of 6,738 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $13.8 per order. Annual carrying costs are $14.8 per bag. The bakery holds 42 bags of flour in inventory as safety stock. On average, how many bags of flour are in inventory? A large bakery buys flour in 50-pound bags. The bakery uses an average of 6,738 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $13.8 per order. Annual carrying costs are $14.8 per bag. The bakery holds 42 bags of flour in inventory as safety stock. On average, how many bags of flour are in inventory?

Answer rating: 100% (QA)

Annual Usage A 6738 bags Ordering Cost per order O 1380 Carrying Cost per ba... View the full answer