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A large law firm uses an average of 10 reams of photocopy paper per day. The company operates 260 days a year. The annual cost
A large law firm uses an average of 10 reams of photocopy paper per day. The company operates 260 days a year. The annual cost of carrying a ream of paper in stock is $1, and the cost of placing and receiving an order for paper is $10. a) What order size minimizes total annual inventory costs? b) Calculate the relevant annual total inventory costs based on the order size found in a) c) Regardless of rounding, are the total annual ordering and storage costs equal using EQ? d) The administrative director is currently ordering batches of 100 reams of paper. The company's partners expect the office to be managed efficiently. Should the manager use the optimal order size rather
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