Question: A printing company estimates that it will require 5,000 reams of a certain type of paper in a year. Per unit price is 12 dollars.

A printing company estimates that it will require
A printing company estimates that it will require 5,000 reams of a certain type of paper in a year. Per unit price is 12 dollars. The annual cost of carrying one unit in inventory is 0.6 dollars. 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 25 dollars per trip. Assume 200 working days per year and the lead time for orders is 5 working days. a) 12 points] The optimum number of roams to buy at one time is Number (Round your solution to the nearest Integer) b) 12 points Number times should lots of this size be bought during a year. (Round your solution to two decimal places if needed) c) 3 points) The teorder paint (ROP) is Number units. (Round your solution to the nearest Integer) Now assume that the company decided to produce the papers on its own at a rate of 75 reams of paper per day. They still need 5,000 reams of paper in a year. The setup cost for the production system in 56 dollars. Assume 200 working days per year. Per unit price is 12 dollars. The annual cost of carrying one unt in Inventory is 0.6 dollar d) (2 points) The optimal production quantity is Number units. (Round your solution to the nearest Integer) 112 points) The maximum inventory level is Number units. (Round your solution to two decimal places if needed) 12 points) The percentage of time in a year that the facility will be producing components is Number % (Round your solution to two decimal places if needed) a la polis) The annual cost of holding Inventory is Number dollars. (Round your solution to two decimal places if needed)

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