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Yellow Press, Inc., buys paper in 1 , 5 0 0 - pound rolls for printing. Annual demand is 3 , 0 0 0 rolls.
Yellow Press, Inc., buys paper in pound rolls for printing. Annual demand is rolls. The cost per roll is $ and the annual holding cost is percent of the cost. Each order costs $
a How many rolls should Yellow Press order at a time?
The economic order quantity is:
EOQ
where is demand in rolls per year, is the cost per order, and is the cost per roll multiplied by the annual holding cost as a percentage of the cost as a decimal
Yellow Press should order rolls at a time. Enter your response rounded to the nearest whole number.
b What is the time between orders? Assume workdays per year.
The time between orders, expressed in days is:
workdayear
where EOC is the economic order quantity and is demand in rolls per year.
The time between orders is days. Enter your response rounded to one decimal place.
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