Sells bags of cedar chips for pet bedding or snacking

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Reference no: EM131372006

Oliah's organix pet shop sells bags of cedar chips for pet bedding or snacking. THe supplier has offered Oliah the following terms: Order 1-100 bags, and the price is $6 a bag. Order 101 or more bags, and the price is 4.50 a bag. Annual demand is 630 bags, fixed ordering costs are 9$ per order, and the per-bag holding cost is estimated to be around $2 per year. a) what is the EDQ for the bags b) what order quantity will result in the lowest total annual cost to Oliah

Reference no: EM131372006

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Sells bags of cedar chips for pet bedding or snacking : Oliah's organix pet shop sells bags of cedar chips for pet bedding or snacking. THe supplier has offered Oliah the following terms: Order 1-100 bags, and the price is $6 a bag. what is the EDQ for the bags. what order quantity will result in the lowe..

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