Q1. Electronic Computer services (ECS) uses paper at the rate of 1500 boxes Per month. It costs
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Question:
Q1. Electronic Computer services (ECS) uses paper at the rate of
1500 boxes Per month. It costs $75 to place an order and holding cost
for paper is $3.75 per box per year. Lead time 7 days. The company
operates 300 days per year.
(a) Compute the optimal order quantity for ECS
(b) How many orders will ECS place per year with this order quantity.
(c) Find out the reorder point. (Calculate yourself)
Show all the calculations.
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