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1. A large law firm uses an average of 48 boxes of copier paper per day. The firm operates 260 days per year. Storage and handling costs for the paper are $30 per year per box, and it costs $39 to order and receive a shipment of paper. How many orders for paper will be placed each year? calculate to 4 dec places.
2. A large law firm uses an average of 51 boxes of copier paper per day. The firm operates 260 days per year. Storage and handling costs for the paper are $21 per year per box, and it costs $49 to order and receive a shipment of paper.
On average, how many boxes of paper are in inventory?
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What will be our average number of boxes on hand if we order the EPQ bags in each order?
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Calculate the optimal order quantity, assume an annual holding cost of 15% of hold inventory.
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