Question: A printing company estimates that it will require 1300 reams of a certain type of paper in a year. The cost of carrying one unit

A printing company estimates that it will require
A printing company estimates that it will require
A printing company estimates that it will require 1300 reams of a certain type of paper in a year. The cost of carrying one unit in inventory for 1 year is 58 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 $26 per trip. Treating this cost as the order cost, what is the optimum number of reams to buy at one time under the continuous-review inventory model? Note: Only round your final answer to the nearest integer. Do not include the unit of measurement in your answer. For instance, if the answer is 15 units only enter 15. Your Answer: Answer Using the EOQ model, the optimal order quantity of a product used to be 90 units. Having experienced a decrease in ordering cost from $200 per order to $50, the revised EOQ should be Note: Assume that everything else stayed the same. 22.5 units 45 units 360 units cannot be determined 180 units

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