A contractor buys cement in 25-pound bags. The contractor uses 1,440 bags a year. Ordering cost is $15 per order. Annual carrying cost is $75 per bag. 1-Determine the economic order quantity. ____bages 2-What is the average number of bags on hand? 3-How many orders per year will there be?

Name: A contractor buys cement in 25-pound bags. The contractor uses 1,440 b
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Description: A contractor buys cement in 25-pound bags. The contractor uses 1,440 bags a year. Ordering cost is $15 per order. Annual carrying cost is $75 per bag.1-Determine the economic order quantity. ____bages2-What is the average number of bags on hand?3-Ho

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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