Operation management

| December 9, 2015

a local nursery greens uses 1560 bags of plant food annually. Green works 52 weeks per year. It costs $10 to place an order for plant food. The annual holding cost rate is $5 per bag. Lead time is one week.

(a) Calculate the economic order quantity

(b) Calculate the total annual costs

(c) Determine the reorder point

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