A large law firm uses an average of 15 packages of copier paper a day. Each package contains 500 sheets. The firm operates 280 days a year. The holding cost for the paper is $1 per year per package, and the ordering cost is $8 per order. a. What order quantity would minimize total annual ordering and holding costs? (Round the final answer to the nearest whole number.) EOQ packages b. Calculate the total annual inventory control cost using your order quantity from part a. (Round the final answer to 2 decimal places.) TC $ c. Except for rounding, are annual ordering and holding costs equal at the EOQ? multiple choice 1

• Yes
• No

d. The office manager is currently using an order quantity of 130 packages. The partners of the firm expect the office to be managed in a cost-efficient manner. Would you recommend that the office manager use the optimal order quantity instead of 130 packages? multiple choice 2

• Yes
• No