Question: Please help with showing steps. A large bakery buys flour in 20 kg bags at a price of 40 AED each. The bakery uses an
Please help with showing steps.
A large bakery buys flour in 20 kg bags at a price of 40 AED each. The bakery uses an average of 1,024 bags a year and works 320 days a year. Preparing an order and receiving a shipment of flour involves a cost of 100 AED per order and the lead time is 5 days. Annual carrying costs are 20% of the bag price. Determine the following. (Select the correct answer from the drop-down menu) The economic order quantity (Q.) = [a] pages. Length of the optimal order cycle = [c] day. The average number of bags on hand = [b] pages. The total carrying and ordering cost = [d] AED The reorder point (ROP) if the demand and the lead time are certain = [e] pages Selected Answer: A large bakery buys flour in 20 kg bags at a price of 40 AED each. The bakery uses an average of 1,024 bags a year and works 320 days a year. Preparing an order and receiving a shipment of flour involves a cost of 100 AED per order and the lead time is 5 days. Annual carrying costs are 20% of the bag price. Determine the following. (Select the correct answer from the drop-down menu) The economic order quantity (Q.) = 160 pages. Length of the optimal order cycle = 16 day. The average number of bags on hand = 80 pages. The total carrying and ordering cost = 200 AED The reorder point (OP) if the demand and the lead time are certain = 16 pages Correct Answer: A large bakery buys flour in 20 kg bags at a price of 40 AED each. The bakery uses an average of 1,024 bags a year and works 320 days a year. Preparing an order and receiving a shipment of flour involves a cost of 100 AED per order and the lead time is 5 days. Annual carrying costs are 20% of the bag price. Determine the following. (Select the correct answer from the drop-down menu) The economic order quantity (Qo) - 160 pages. Length of the optimal order cycle = 50 day. The average number of bags on hand = 80 pages. The total carrying and ordering cost=1280 AED The reorder point (ROP) if the demand and the lead time are certain = 16 pages
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