Question: An office supply store open five days a week must determine the best inventory policy for boxes of copier paper. Weekly demand is nearly constant
An office supply store open five days a week must determine the best inventory policy for boxes of copier paper. Weekly demand is nearly constant at 240 boxes. When orders are placed, the entire shipment arrives at once. The cost per box is $28, and the inventory holding cost is 36%. Orders are placed at a cost of $43 each, including preparation time and communication charges, and the lead time is two days. (Assume the store operates 52 weeks per year.) (a) Find the optimal order quantity. (Round your answer to the nearest whole number.) (b) What is the total annual cost (in dollars)? (Round your answer to two decimal places.) $ (c) What is the reorder point? (d) What is the cycle time (in days)? (Round your answer to two decimal places.) days
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