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29 Sep 2019
The Gentry Garden Center sells 90,000 bags of lawn fertilizer annually. The optimal safety
stock (which is on hand initially) is 1,000 bags. Each bag costs the firm $1.50, inventory
carrying costs are 20%, and the cost of placing an order with its supplier is $15.
a. What is the Economic Ordering Quantity?
b. What is the maximum inventory of fertilizer?
c. What will be the firmâs average inventory?
d. How often must the company order?
Please Show Work
The Gentry Garden Center sells 90,000 bags of lawn fertilizer annually. The optimal safety
stock (which is on hand initially) is 1,000 bags. Each bag costs the firm $1.50, inventory
carrying costs are 20%, and the cost of placing an order with its supplier is $15.
a. What is the Economic Ordering Quantity?
b. What is the maximum inventory of fertilizer?
c. What will be the firmâs average inventory?
d. How often must the company order?
Please Show Work
Casey DurganLv2
29 Sep 2019