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A) Compute the Economic Order Quantity (EOQ) for both Super Grow and Nature's Own fertilizers given the annual demand, order cost/order, and carrying cost/unit.

B) At EOQ, calculate the total ordering and carrying cost for Super Grow and Nature's Own.

User Robertson
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Final answer:

Calculating the EOQ requires specific annual demand, order cost, and carrying cost data, which are not provided. Without these, it's not possible to calculate EOQ or determine total ordering and carrying costs for Super Grow and Nature's Own fertilizers.

Step-by-step explanation:

To calculate the Economic Order Quantity (EOQ) for both Super Grow and Nature's Own fertilizers, we would use the EOQ formula: EOQ = √(2DS/H), where D is the annual demand, S is the order cost per order, and H is the carrying cost per unit. Unfortunately, the data provided does not include specific figures for annual demand, order cost, or carrying cost for these products. To answer this question fully, such specifics are required. Without these figures, it is not possible to compute the EOQ or determine the total ordering and carrying costs.

If the needed data were available, after computing the EOQ, one would then calculate the total ordering cost by multiplying the number of orders per year (D/EOQ) by the order cost (S), and the total carrying cost by multiplying the EOQ by half (because on average you have half your EOQ in stock) by the carrying cost per unit (H). Again, specific values for D, S, and H are essential to perform these calculations.

User Biplav
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