Suppose Stanley's Office Supply purchases 100,000 boxes of pens every year. Ordering costs are $133.95 per order and carrying costs are $0.95 per box. Moreover, management has determined that the EOQ is 5,310.37 boxes. Note: The ordering costs and EOQ differ from problem 1. The vendor now offers a quantity discount of $0.02 per box if the company buys pens in order sizes of 10,000 boxes. Determine the before-tax benefit or loss of accepting the quantity discount. (Assume the carrying cost remains at $0.95 per box whether or not the discount is taken.)

Use the data and a 365 day year. If the lead time for placing an order is 14 days, and Stanley's Office Supply holds a Safety Stock of 45 days Supply of Boxes of Pens, then at what inventory level in Boxes should an order be placed?