Question: Problem 6 :3 Question Help O Ollah's Organic Pet Shop sells bags of cedar chips for pet bedding or snacking (buyer's choice). The supplier has

Problem 6 :3 Question Help O Ollah's Organic Pet

Problem 6 :3 Question Help O Ollah's Organic Pet Shop sells bags of cedar chips for pet bedding or snacking (buyer's choice). The supplier has offered Ollah the following terms: Order 1 - 270 bags, and the price is $3.50 a bag. Order 271 or more bags, and the price is $3.25 a bag. Annual demand is 780, fixed ordering costs are $12 per order, and the per-bag holding cost is estimated to be around $7 per year. Click the icon to view the table of z values. a. The economic order quantity for the bags is 52. (Enter your response rounded to the nearest whole number.) b. Ollah should order bags at a time to take advantage of the lower cost per unit. (Enter your response rounded to the nearest whole number.) Enter your answer in the answer box and then click Check Answer ? part remaining 1 Clear All Check

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