Question: CAN I ASK HELP WITH THIS? Directions. This activity will check if you really understand how to use different formulas of EOQ and ROP in

CAN I ASK HELP WITH THIS?
Directions. This activity will check if you really understand how to use different formulas of EOQ and ROP in every situation. Write your answers on the answer sheet provided in Appendix E. You can also encode your answers on a long bond paper 1. A large bakery buys flour in 25-pound bags. The bakery uses an average of 1.215 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag. a. Determine the economic order quantity b. What is the average number of bags on hand? 6. How many orders per year will there be? d. Compute the total cost of ordering and carrying flour, e. If holding costs were to increase by $9 per year, how much would that affect the minimum total annual cost? 2. Given this information: Expected demand during lead time = 300 units Standard deviation of lead time demand = 30 units Determine each of the following, assuming that lead time demand is distributed normally: a. The ROP that will provide a risk of stock out of 1 percent during lead time. b. The safety stock needed to attain a 1 adStep by Step Solution
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