EOQ, Reorder point and average inventory
September 25th, 2022
A bakery uses 700 bags of flour per week and works 45 weeks per year. The flour costs $25 per bag. Each time that order is issued it will cose the bakery $100. Carrying costs of the inventory are 15% of unit costs. Determine the economic order quantity, reorder point, and the average inventory for this bakery.