A local nursery, Greens, uses 1560 bags of plant food annually. Greens works 52 weeks per year.

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A local nursery, Greens, uses 1560 bags of plant food annually. Greens works 52 weeks per year. It costs $10 to place an order for plant food. The annual holding cost rate is $5 per bag. Lead time is one week.

(a) Calculate the economic order quantity.

(b) Calculate the total annual costs.

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Operations Management

ISBN: 978-0470325049

4th edition

Authors: R. Dan Reid, Nada R. Sanders

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Question Posted: Oct 19, 2012 08:32 AM

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A local nursery, Greens, uses 1560 bags of plant food annually. Greens works 52 weeks per year.

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a EOQ 79 units b Total annual ...View the full answer

Operations Management

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