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(Solved) : Smith S Florist Popular Flower Bouquet Weekly Demand 40 Units Bouquet Sold 100 Ordering Co Q34221487

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Answer to Smith’s Florist popular flower bouquet has a weekly demand of 40 units. Each bouquet is sold for $100. The ordering cost…

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Description

Smith’s Florist popular flower bouquet has a weeklydemand of 40 units. Each bouquet is sold for $100. The orderingcost is $60 per order. The carrying cost is 30% of the sellingprice per unit per year. The store operates 50 weeks a year.

Required:
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 ordercycle) in weeks using EOQ.