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A governmental office uses 40 copier paper boxes a day. The firm operates 260 days a year. Storage costs are 30 SR per box annually,
A governmental office uses 40 copier paper boxes a day. The firm operates 260 days a year. Storage costs are 30 SR per box annually, and it costs approximately 60 SR to order and receive a shipment of paper. a) Find the optimal order size? b) minimum total cost? c) If the office manager is currently using 200 boxes as an order size, would you recommend him to use your EOQ that you calculated or rather stay using his size of 200 - perform calculations?
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