Question: SRC Inc. buys shrink wrap in 1,000-pound rolls. Annual demand is 3,500 rolls. The cost per roll is $1,000, and the annual holding cost is

SRC Inc. buys shrink wrap in 1,000-pound rolls. Annual demand is 3,500 rolls. The cost per roll is $1,000, and the annual holding cost is 25 percent of the cost. Each order costs $50.
a. How many rolls should SRC order at a time?
b. What is the economic time between orders?

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