Show your work/steps and specify the units ($, %, days, etc.) for answers

(1) An architect firm uses an average of 60 boxes of copier paper a day. The firm operates 280 days a year. Storage and handling costs for the paper are $30 a year per box, and its costs approximately $60 to order and receive a shipment of paper.

(a) What quantity order size would minimize the total annual inventory cost? ________________________________________________________________________________

(b) Determine the minimum total annual inventory cost. ________________________________________________________________________________

(c) The office manager is currently using an order size of 300 boxes. The partners of the firm expect the office to be managed "in a cost-efficient manner." Would you recommend the manager to use your quantity from part (a) rather than 300 boxes? _______. Justify your answer (by determining the total annual inventory cost for 300 boxes):

(2) The ABC Company is both a producer and a user of brass couplings. The firm operates 220 days a year and uses the couplings at a steady rate of 60 per day. Coupling can be produced at a rate of 200 per day. Annual storage cost is $2 per coupling, and machine setup cost is $120 per run. Determine the:

(a) optimal production run size = ________________________________________________________

(b) length of production run = ___________________________________________________________

(c) maximum inventory level = __________________________________________________________