A bakery buys sugar in 15-pound bags. The bakery uses 5000 bags of sugar each year. Carrying costs are $20 per bag per year. Ordering costs are estimated at $5 per order. Assume that the bakery is open 250 days a year and its daily demand is estimated at 20 bags. It takes 5 days for each order of sugar to be filled. 

Required

What are the total annual holding costs?

 $50

 $100
 $25
 $1000
 $500

 What is the maximum inventory held in a given EOQ cycle?

Answer rating: 100% (QA)

Part 1 Part 2 Solution Griven ordering cost s 5 unit Holdin... View the full answer