Business, 24.03.2020 22:08 bdog2213

Aberwald Corporation expects to sell 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 cost is 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 firm%u2019s average inventory?
(d) How often must the company order?

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Aberwald Corporation expects to sell 90,000 bags of lawn fertilizer annually. The optimal safety sto...

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