A large law firm uses an average of $10$ packages of copler paper a day. Each package contains $500$ sheets. The firm operates $270$ days a year. Holding cost for the paper is $$1$ per year per package, and ordering cost is $$6$ per order.

a$.$ What order quantity would minimize total annual ordering and holding cost? $($Thound the thnel answer to the nearest whole number:$)$

EOQ packages

b$.$ Calculate the total annual inventory control cost using your order quantity from part a$.($Fiound the final answer to $2$ declmal places.$)$

TC

$

c$.$ Except for rounding, are annual ordering and holding costs equal at the EOQ?

Yes

No

d$.$ The office manager is currently using an order quantity of $120$ packages. The partners of the firm expect the office to be managed in a cost$-$efficlent manner. Would you recommend that the office manager use the optimal order quantity instead of $120$ packages?

Yes

No