A large ﬁrm uses an average of 40 boxes of copier paper per day. The ﬁrm operates 260 days a year. Storage and handling costs for the paper are $30 a year per box, and it costs approximately $60 to order and receive a shipment of paper.
How many times an order has to be placed to meet demand?
Except for rounding, are annual ordering and carrying costs always equal at the EOQ?
The oﬃce manager is currently using an order size of 200 boxes. The partners of the ﬁrm expect the oﬃce to be managed in a cost-eﬃcient manner.Would you recommend that the oﬃce manager use the optimal order size instead of 200 boxes? Justify your answer.
In this case first you whould note that D = 40/day x 260 days/yr.... View the full answer