Question: A printing company estimates that it will require 1 0 , 0 0 0 packs of specialist print paper each year. The cost of carrying

A printing company estimates that it will require 10,000 packs of specialist print paper each year. The cost of carrying one unit in inventory for a year is 1.50. The company buys the paper from a wholesaler in the same town, sending its own van to pick up the orders at a fixed cost of 50.00 per trip. This cost can be treated as order cost. What is the optimum number of packs of paper to buy at one time?

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