Question: The Bodega uses an EOQ system to manage their inventory of powdered drink mixes. Demand for instant lemonade is 130 packages per week over the
The Bodega uses an EOQ system to manage their inventory of powdered drink mixes. Demand for instant lemonade is 130 packages per week over the course of the 52-week year. The ordering cost is $20 and the annual holding cost is 15%. The cost to The Bodega is $1/package, and they sell it to their customers at $3/package. There is a 1-week replenishment time once they place an order with their supplier. How many orders per year does The Bodega place with their supplier?
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