Chapter $12$ question:

A bakery buys flour in $25-$pound bags. The bakery uses $2,430$ bags a year. Ordering cost is $$20$ per order. Annual carrying cost is $$150$ per bag.

a$)$ Determine the economic order quantity.

b$)$ What is the average number of bags on hand?

$1$

c$)$ How many orders per year will there be$?$

d$)$ Compute the total cost of ordering and carrying flour.