A local nursery, Greens, uses 1780 bags of plant food annually. Greens works 50 weeks per year.

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A local nursery, Greens, uses 1780 bags of plant food annually. Greens works 50 weeks per year. It costs $12 to place an order for plant food. The annual holding cost rate is $6 per bag. Lead time is one week.

a) Calculate the economic order quantity.

b) Calculate the total annual costs.

c) Determine the reorder point.

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Operations Management An Integrated Approach

ISBN: 9781119497387

7th Edition

Authors: R. Dan Reid, Nada R. Sanders

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Question Posted: Sep 27, 2023 03:05 AM

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A local nursery, Greens, uses 1780 bags of plant food annually. Greens works 50 weeks per year.

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a b Total annual cost DQS Q2H 1...View the full answer

Operations Management An Integrated Approach

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