Question: Inventory Management [ 1 8 marks ] A mail - order house uses 1 5 , 0 0 0 boxes a year. Carrying costs are

Inventory Management [18 marks] A mail-order house uses 15,000 boxes a year. Carrying costs are $2.10 per box a year, and ordering costs are $280. The following price schedule applies. Number of Boxes Price per Box (in $)0 to 2; 9992:003; 000 to 4; 999 c 5; 000 or more 0:98c 1.[6 marks] Determine EOQ. 2.[3 marks] Determine the average number of orders per year under EOQ. 3.[9 marks] If EOQ is optimal, what is the range of the price per box (c) in the second price interval?

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