Question: 3. A printing company estimates that it w ill require 100 reams of a certain type of paper a month. The cost of carrying one
3. A printing company estimates that it w ill require 100 reams of a certain type of paper a month. The cost of carrying one unit in inventory is 8%. Each ream's w holesale cost is $65. The company buys the paper from a w holesaler in the same tow n, sending its ow n truck to pick up the orders at a fixed cost of $20.00 per trip. The company operates 300 days per year. Lead time for an order to be ready for pickup is 5 days a. What is the optimum number of reams to buy at one time? b. How many times should lots of this size be bought during this period? c. What is the minimum cost (holding and setup) of maintaining inventory on this item for the period? d. What is the overall cost, including the cost of the reams? e. What is the re-order point
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