Burgerama requires all employees who handle food to wear latex gloves for sanitary reasons. The annual demand for gloves is 250 boxes of 200 per year. The order cost is $11 per order, and the car-rying cost is 25 percent per box per year of the purchase cost of $20 per box.
$5 per box $4.75 per box $4.50 per box $4.25 per box
a. How many boxes of gloves should Burgerama order at one time?
b. What is the time between orders?
c. What would be the change in annual cost if Burgerama had storage space for only 15 boxes per order and thus was forced to use an order quantity of 15?