Qwe sells plastic grains that are used to make juice bottles. The annual demand for the...

  

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Qwe sells plastic grains that are used to make juice bottles. The annual demand for the material is 1,000,000 bags, and it is spread evenly throughout the year. Qwe store all if its inventory in a central warehouse. The cost of placing, receiving, and inspecting an order to replenish inventory is $32,500. Qwe's annual carrying costs are 20% of the inventory value, which is $250 per bag. Knowing that Qwe uses the EOQ model of inventory, answer the following questions. a) What is the optimal ordering quantity, Q*? [4 points] b) What is the number of days between orders, T*? [2 points] c) What is total optimal cost of inventory, Total cost*? [4 points] Qwe sells plastic grains that are used to make juice bottles. The annual demand for the material is 1,000,000 bags, and it is spread evenly throughout the year. Qwe store all if its inventory in a central warehouse. The cost of placing, receiving, and inspecting an order to replenish inventory is $32,500. Qwe's annual carrying costs are 20% of the inventory value, which is $250 per bag. Knowing that Qwe uses the EOQ model of inventory, answer the following questions. a) What is the optimal ordering quantity, Q*? [4 points] b) What is the number of days between orders, T*? [2 points] c) What is total optimal cost of inventory, Total cost*? [4 points]

Answer rating: 100% (QA)

a Optimal ordering quantity Q Given Annual demand 1000000 bags Ord... View the full answer