The business school needs 4000 rolls of toilet paper for the spring semester, 2000 for the summer
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Question:
The business school needs 4000 rolls of toilet paper for the spring semester, 2000 for the summer semester and 4000 for the fall semester (there is no variability of demand or lead time). It costs $100 to place an order for the rolls. It costs $1.00 per year per roll to hold them in inventory. What amount should the Dean order if he uses the EOQ calculation?
a. Amount is less than or equal to 1,200
b. Amount is greater than 1,200 but less than or equal to 1,325
c. Amount is greater than 1,325 but less than or equal to 1,450
e. Amount is greater than 1,575
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