(Solved) Operations Management question over economic order quantity, average number, total cost, etc. Help!

A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag.

a. Determine the economic order quantity. (Round your final answer to the nearest whole number.)

Economic order quantity:______ bags

b. What is the average number of bags on hand? (Round your final answer to the nearest whole number.)

Average number of bags:______

c. How many orders per year will there be? (Round your final answer to the nearest whole number.)

Number of orders per year:_____

d. Compute the total cost of ordering and carrying flour. (Round your final answer to the nearest whole number. Omit the "$" sign in your response.)

Total cost: $_____

e. If holding costs were to increase by $9 per year, how much would that affect the minimum total annual cost? (Round your intermediate calculations to 2 decimal places and final answer to 2 decimal places. Omit the "$" sign in your response.)

Increase by: $_____

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Operations Management question over economic order quantity, average number, total cost, etc. Help!

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