Question: A printing company estimates that it will require 1 , 0 0 0 reams of a certain type of paper in one year. The cost

A printing company estimates that it will require 1,000 reams of a certain type of paper in one year. The cost of carrying one unit (ream) in inventory for one year is 50 cents. 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 $20.00 per trip. Treating this cost of $20.00 as the order cost if the company follows the EOQ model , what is the total holding cost in one year ? Compute in 2 dec pl. Choose the closest one . a . $353.75 b. $170.75 c. $70.75 d $700.75 e. $283.00

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