What is the maximum inventory of ferilizer

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Reference no: EM131070908

The Garden Center sells 90,000 bags of fertilizer annually. The optimal safety stock (initially) is 1,000 bags. Each bag costs the firm $1.50, inventory carrying costs are 20%, and the cost of placing the order with its supplier is $15.

a) What is the economic ordering quantity? ?

b) What is the maximum inventory of ferilizer?

c) What will be firm's average inventory?

d) How often must the company order?

Reference no: EM131070908

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