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7 June, 09:48

s flour in 15-pound bags. Panera Bread uses 5000 bags of flours each year. Carrying/holding costs are $20 per bag per year. Ordering costs are estimated at $5 per order. Assume that Panera Bread Chicago bakery is open 250 days a year and its daily demand is estimated at 20 bags. It takes 5 days for each order of flour to be filled. What is the minimum inventory held in a given EOQ cycle

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  1. 7 June, 09:50
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    0 bags

    Explanation:

    Given that

    Usage of bags per year = 5,000 bags

    Carrying or holding cost per bag per year = $20

    Ordering cost = $5 per order

    Number of days open = 250 days

    Estimated Daily demand = 20 days

    Filling days required = 5 days

    Based on the above information, the minimum inventory should be equal to zero as the daily demand is remains constant throughout the year. Therefore, it would be zero before replenishment
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