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An architect firm uses an average of 25 boxes of copier paper a day. The firm operates 280 days a year. Storage and handling costs for the paper are $20 a year per box, and it costs approximately $50 to order and receive a shipment of paper.
Data Line: ______
a.) What order size would minimize the sum of annual ordering and carrying costs?
b.) Determine the total annual cost using your order size from part (a)
c.) The office manager is currently using an order size of 100 boxes. The partners of the firm expect the office to be managed "in a cost-efficient manner" Would you recommend the office manager use the optimal size instead of 100 boxes? Justify your answer.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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