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Round Answers to 6 decimal places
(A) A large law firm uses an average of 31 boxes of copier paper per day. The firm operates 260 days per year. Storage and handling costs for the paper are $29 per year per box, and it costs $52 to order and receive a shipment of paper.
What order size would minimize the sum of annual carrying and ordering costs?
(B) A large law firm uses an average of 25 boxes of copier paper per day. The firm operates 260 days per year. Storage and handling costs for the paper are $33 per year per box, and it costs $52 to order and receive a shipment of paper.
On average, how many boxes of paper are in inventory?
(C) A large law firm uses an average of 47 boxes of copier paper per day. The firm operates 260 days per year. Storage and handling costs for the paper are $20 per year per box, and it costs $55 to order and receive a shipment of paper.
What is the annual cost of carrying inventory of boxes of paper?
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