A local nursery, Greens, uses 1,780 bags of plant food annually. Greens works 52 weeks per year. It costs $12 to place an order for plant food. The Annual holding cost rate is $5 per bag. Lead time is one week. Calculate the economic order quantity. (Round your answer to 1 decimal place)

Managerial Economics: A Problem Solving Approach
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ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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A local nursery, Greens, uses 1,780 bags of
plant food annually. Greens works 52 weeks
per year. It costs $12 to place an order for
plant food. The Annual holding cost rate is
$5 per bag. Lead time is one week.
Calculate the economic order quantity.
(Round your answer to 1 decimal place)
Transcribed Image Text:A local nursery, Greens, uses 1,780 bags of plant food annually. Greens works 52 weeks per year. It costs $12 to place an order for plant food. The Annual holding cost rate is $5 per bag. Lead time is one week. Calculate the economic order quantity. (Round your answer to 1 decimal place)
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