Question: 4 points A printing company estimates that it will require 1,500 reams of a certain type of paper in a given period. Production averages 30

4 points A printing company estimates that it

4 points A printing company estimates that it will require 1,500 reams of a certain type of paper in a given period. Production averages 30 units per day, while demand is 20 units per day The cost of carrying one unit in inventory for that period is $1.75. The company buys the paper from a wholesaler in the same town, sending its own truck to pick up the orders at a fixed cost of 540 per trip. Calculate the following a) If the firm wishes to produce this product in economic batches, what is the optimal size of the batch? b) How many cycles (orders) will the company have each year? c) What is the maximum inventory level? d) What are the total annual holding and setup costs? For the toolbar, press ALTF10 (PC) or ALT-FN+F10 (Mac). BIV Paragraph Arial 14px Av o O WORDS POWERED BY TINY

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