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A large law firm uses an average of 150 packages of copier paper a day. The firm operates 280 days a year. Holding cost
A large law firm uses an average of 150 packages of copier paper a day. The firm operates 280 days a year. Holding cost for the paper is $10 per year per package, and ordering cost is $20 per order. a.Calculate the EOQ. b.Calculate the total annual cost using the EOQ. c.The office manager is currently using an order quantity of 500 packages instead of the EOQ. Calculate the total annual cost using 500 packages as the quantity. d.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 economic order quantity instead of 500 packages? (A) b. C. d. a. 409.88 4098.78 4180 Yes a. 168000 B b. C. 840005 4180 d. No b. a. 409.88 819.76 C. 1000 d. Yes D b. C. d. a. 456 2286.58 1000 No
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