Question: 2) TCB Print Shop estimates that it will require 1,600 reams of a certain type of paper in a given period. The cost of carrying

2) TCB Print Shop estimates that it will require 1,600 reams of a certain type of paper in a given period. The cost of carrying one unit in inventory for that period is 50 cents. The company buys the paper from a wholesaler in the nearby city for $5.00 per ream, sending its own truck to pick up the orders at a fixed cost of $20.00 per trip. Treating this cost as the order cost, and given that the store operates for 320 days per year, with a 2 day lead time, calculate for the following inventory management costs:

A. What is the Economic Order Quantity (EOQ) for the company? b. What is the annual holding cost? c. What is the annual ordering cost? d. What would be the total inventory management cost? e. What is the reorder point (ROP)?

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