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You are responsible for paper supplies in the copying room in a medium size office. Paper usage averages 8 boxes per week. Each box costs
You are responsible for paper supplies in the copying room in a
medium size office. Paper usage averages boxes per week. Each
box costs $ The shipping cost per order, regardless of size, is $
and receiving an order takes about an hour of your time, which costs
the company $ The company figures financing costs at per
year. Keeping the boxes organized costs about $ per week per
box.
a If the order size is units, compute the total annual cost and
total relevant cost.
b If the current policy is to order two weeks of supplies with each
order, determine the total annual cost and total relevant cost.
c Compute the economic order quantity.
d Compute the optimal cycle length.
e Compute the optimal annual total cost.
f Compute the economic order quantity with integer order size.
g Compute the economic order quantity with package size of boxes
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