Question: smiths florist popular flower bouquet has a weekly demand of...
Smith's Florist popular flower bouquet has a weekly
demand of 40 units. Each bouquet is sold for $100. The ordering
cost is $60 per order. The carrying cost is 30% of the selling
price per unit per year. The store operates 50 weeks a year.
i. Compute the Economic Order Quantity (EOQ)
ii. What is the total annual carrying cost this year?
iii. What is the time between orders (i.e. length of an order cycle) in weeks using EOQ.