Bakerys optimal-economic order quantity for sugar

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A local bakery must decide how much sugar to order each time they place an order. Their annual demand for sugar is 5000 pounds. The cost of placing an order for sugar is $25. The delivery lead time is 5 days. It costs the local bakery $2 to hold each pound of sugar for a year. What is the local bakery's optimal/economic order quantity for sugar (choose the closest answer)?

Reference no: EM13780468

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Bakerys optimal-economic order quantity for sugar : A local bakery must decide how much sugar to order each time they place an order. Their annual demand for sugar is 5000 pounds. The cost of placing an order for sugar is $25. The delivery lead time is 5 days. It costs the local bakery $2 to hold each..

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