A bakery buys sugar from a big distributor to use in baking cakes. Typically, they use...

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A bakery buys sugar from a big distributor to use in baking cakes. Typically, they use 3711 bags of sugar in a year. The price of sugar is typically $11 per bag. The cost to the bakery for placing an order is $29, and the annual carrying cost is $15 per bag. The distributor has offered the bakery the following volume discount schedule: Discount rate on the original price 0 percent 5 percent more than 800 10 percent Order Size 1--449 450-799 We are trying to find how many bags of sugar should the store order, whenever they place a new order of sugar.Assume 364 days a year and 52 weeks a year. IMPORTANT: Note, the discounts off of original price are reported. You need to calculate the actual prices. Keep two decimal places in your calculations.If we ignore the discounts, how many bags of sugar should we order? Fill in the blanks: Order Quantity Quantity from EOQ model Enough to get 5 percent discount Enough to get 10 percent discount Unit Price to Pay Total Annual Inventory Related Cost Based on this quantity discount information, how may bags of sugar should the store order? How often (in "days") should the bakery order? A bakery buys sugar from a big distributor to use in baking cakes. Typically, they use 3711 bags of sugar in a year. The price of sugar is typically $11 per bag. The cost to the bakery for placing an order is $29, and the annual carrying cost is $15 per bag. The distributor has offered the bakery the following volume discount schedule: Discount rate on the original price 0 percent 5 percent more than 800 10 percent Order Size 1--449 450-799 We are trying to find how many bags of sugar should the store order, whenever they place a new order of sugar.Assume 364 days a year and 52 weeks a year. IMPORTANT: Note, the discounts off of original price are reported. You need to calculate the actual prices. Keep two decimal places in your calculations.If we ignore the discounts, how many bags of sugar should we order? Fill in the blanks: Order Quantity Quantity from EOQ model Enough to get 5 percent discount Enough to get 10 percent discount Unit Price to Pay Total Annual Inventory Related Cost Based on this quantity discount information, how may bags of sugar should the store order? How often (in "days") should the bakery order?

Answer rating: 100% (QA)

To determine the optimal order quantity EOQ for the bakery as well as the order quantity for getting ... View the full answer