Ollah 's Organic Pet Shop sells about 4,000 bags of free range dog biscuits every year The xed ordering cost is $15, and the cost of holding a bag in inventory for a year is $2 What is the economic order quantity for the biscuits ...

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Ollah's Organic Pet Shop sells about 4,000 bags of free range dog biscuits every year. The xed

Question:

Ollah's Organic Pet Shop sells about 4,000 bags of free range dog biscuits every year. The ﬁxed ordering cost is $15, and the cost of holding a bag in inventory for a year is $2. What is the for the biscuits?

Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...