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A large bakery buys flour in 25-pound bags. The bakery uses an average of 4,500 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag.
Determine the economic order quantity. (Do not round intermediate calculations. Round your final answer to the nearest whole number.)
What is the average number of bags on hand?(Round your answer to the nearest whole number.)
How many orders per year will there be? (Round your final answer to the nearest whole number.)
The economic production quantity is 500 units (units are delivered to the user department as they come off the production line). If the firm decides to buy this item from an outside supplier rather than producing it, the economic purchase quantity..
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