Question: A printing company estimates that it will require 18000 reams of a certain type of paper in a given period. The cost of carrying one
A printing company estimates that it will require 18000 reams of a certain type of paper in a given period. The cost of carrying one unit in inventory for that period is $1,1. 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 $49 per trip. Treating this cost as the order cost, what is the minimum cost (holding and setup) of maintaining inventory on this item for the period? (Round to the nearest integer. Do not round at the intermediate steps).
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