The complete Gardener is deciding on the economic order quantity for two brands of lawn fertilizer: “Super–Grow” and “Natives Own”. The following information is collected:
|
Fertilizer |
||
|
Super–Grow |
Natives Own |
|
|
Annual demand |
2,000 bags |
1,280 bags |
|
Relevant ordering cost per purchase order |
Rs. 1,200 |
Rs. 1,400 |
|
Annual relevant carrying cost per bag |
Rs. 480 |
Rs. 560 |
Required:
- EOQ for Super Grow and Natives Own.
- For the EOQ, what is the sum of the total annual relevant ordering costs and the annual relevant carrying costs for Super Grow and Natives Own?
- For the EOQ compute the number of deliveries per year for Super Grow and Natives Own.