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Garden Variety Flower shop uses 187.5 clay pots a week. Annual carrying costs are $0.60 per pot per year. Ordering costs are $20 per order. Lead time is 2 weeks. The store operates 48 weeks per year.
a. How much should the store order at one time?
b. How many times per year should the store order?
c. How many weeks should be between two consecutive orders?
d. What is the store’s minimum total annual cost of placing orders & carrying inventory?
If the company wishes to carry no safety stock what is the reorder point.
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