Southern Home and Gardens sells approximately 38,000 roses per year. The cost of shipping is $45 per order. The holding cost is $4 per rose bush. It takes two weeks for an order to arrive. Weekly demand is 650 pounds of cheese with a weekly standard deviation of 42. Southern Home and Gardens would like to satisfy 85% (Z = 1.04) of their customers. Answer the following questions. (You must put the question letter beside it’s answer to get full credit.) 5 Point Bonus: Draw a graph of this data. What is the economic order quantity? What is the reorder point? How many backorders will you have each year? How many customers will not get a rose bush each order? Write a paragraph to explain all of the above calculations.

Answer rating: 100% (QA)

A What is the economic order quantity We have given that Annual demand which is 38000 bags ordering cost which is 45 holding cost 4 per rose bush Now ... View the full answer