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Joan manages an office supply store. One product in the store is computer paper. She knows that 10,000 boxes will be sold this year at
Joan manages an office supply store. One product in the store is computer paper. She knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15-per box per year. If Joan orders 500 boxes each time he orders from his supplier, what would his total annual inventory cost be (holding cost plus ordering cost)? 53.075 $3,750 $4,350 None of the above $3,000
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