Compute total annual cost using your order size from part

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A large law firm uses an average of 40 boxes of copier paper a day. The firm operates 257 days a year. Storage and handling costs for the paper are $25 a year per box, and it costs approximately $64 to order and receive a shipment of paper.

a. What order size would minimize the sum of annual ordering and carrying costs? (Round your answer to the nearest whole number.) Order size boxes ____________

b. Compute the total annual cost using your order size from part a. (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.) Total annual cost $ ___________________

c. Except for rounding, are annual ordering and carrying costs always equal at the EOQ? Yes or No

d-1. The office manager is currently using an order size of 195 boxes. The partners of the firm expect the office to be managed "in a cost-efficient manner." compute total cost for this current order size. (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.) TC =_______ $ rev: 02_25_2012.

Reference no: EM131233547

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