Question: AQ 1 . Inventory Management ( 1 1 marks ) A bakery sells 2 ; 0 0 0 loaves of bread every month and orders

AQ1. Inventory Management (11 marks) A bakery sells 2; 000 loaves of bread every month and orders our from a supplier. The annual carrying cost per unit our (one unit of our can be used to make one loaf of bread) is $8. Note: The following three questions are independent of each other. 1.[3 marks] If the bakery orders 1; 200 units of our each time, what is the length of each order cycle (in month)?2.[4 marks] The bakery orders 1; 800 units of our each time and nds that the annual inventory holding cost is twice the annual ordering cost. What is the xed ordering cost? 3.[4 marks] If, instead, the optimal order size of our is 2; 400 units, what is the xed ordering cost?

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