Economic Ordering Quantity
The Gentry Garden Center sells 86,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 850 bags. Each bag costs the firm $1.6, inventory carrying costs are 18%, and the cost of placing an order with its supplier is $16.
What is the Economic Ordering Quantity? Round your answer to the nearest whole number. bags.
What is the maximum inventory of fertilizer?
bags (Round your answer to the nearest whole number.) $ (Round your answer to one decimal place.)
What will be the firm's average inventory?
bags (Round your answer to the nearest whole number.) $ (Round your answer to one decimal places.)
How often must the company order? Round your answer to the nearest whole number. Use 365-day year.
The company must place an order every days.