A copy center uses standard 8.5x11 paper at a rate of 36 boxes of paper a...

 

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A copy center uses standard 8.5"x11" paper at a rate of 36 boxes of paper a day. (Assume 365 days in a year.) The annual cost of holding a box of paper in inventory for a year is estimated at $2. Because of the weight of the paper, shipping an order of paper costs $227 per order. How many boxes of paper should the copy center order with each order in order to minimize their annual ordering and holding costs? A copy center uses standard 8.5"x11" paper at a rate of 36 boxes of paper a day. (Assume 365 days in a year.) The annual cost of holding a box of paper in inventory for a year is estimated at $2. Because of the weight of the paper, shipping an order of paper costs $227 per order. How many boxes of paper should the copy center order with each order in order to minimize their annual ordering and holding costs?

Answer rating: 100% (QA)

To answer this question we can use the Economic Order Quantity EOQ model which is a formula used in ... View the full answer