Question
1a) A car rental agency uses 120 boxes of staples a year. The boxes cost $5 each. It costs $8 to order staples, and it
1a) A car rental agency uses 120 boxes of staples a year. The boxes cost $5 each. It costs $8 to order staples, and it costs $0.90 to hold a box of staples in inventory for one year. How many boxes of staples should the car rental company order each time they need staples, to minimize their combined ordering and holding costs for staples?
1b)A car rental agency uses 120 boxes of staples a year. The boxes cost $5 each. It costs $8 to order staples, and it costs $0.90 to hold a box of staples in inventory for one year. Using the order size that minimizes the car rental agencys combined ordering and holding costs for staples, how much does the car rental agency actually spend on holding costs for staples each year?
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