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EOQ, Reorder point and average inventory

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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.

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Solution Summary

Provided is details on how to calculate economic order quantity, reorder point, and the average inventory for a bakery case (see attachment).

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