An office would like to order reams of paper. Each ream consists of 500 sheets. The...

 

Transcribed Image Text:

An office would like to order reams of paper. Each ream consists of 500 sheets. The office uses 2000 reams per year. Annual carrying costs are $5 per ream, and ordering costs are $30. The table below shows the discount price schedule provided by the office supply company: Order Quantity (boxes) 200-999 1000-1999 2000-2999 3000+ Price per ream ($) 14 12 10 8 Determine the best order quantity that minimize the total annual inventory cost. An office would like to order reams of paper. Each ream consists of 500 sheets. The office uses 2000 reams per year. Annual carrying costs are $5 per ream, and ordering costs are $30. The table below shows the discount price schedule provided by the office supply company: Order Quantity (boxes) 200-999 1000-1999 2000-2999 3000+ Price per ream ($) 14 12 10 8 Determine the best order quantity that minimize the total annual inventory cost.

Answer rating: 100% (QA)

To determine the best order quantity that minimizes the total annual inventory cost we need to calcu... View the full answer