A large consulting firm orders photocopying paper by the carton. The firm pays a $30 delivery charge on each order. The total cost of storing the paper, including forgone interest, storage space, and deterioration comes to about $1.50 per carton per month. The firm uses about 1,000 cartons of paper per month.

a. Fill in the following table:

b. Calculate the economic order quantity. Is your answer consistent with your findings in part (a)?

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Order Size 100 200 250 500 Orders per month Total order cost Average inventory Total carrying costs Total inventory costs