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Office Supply House purchases reams of paper per year, ordered in lots of reams per week at $ per ream. The vendor covers all shipping costs. Office Supply House is not required to inspect the shipment upon entry. Office Supply House earns on its cash investments. The purchase order lead time is two weeks. The following cost data are available.
Relevant ordering costs per purchase order
Relevant insurance, materials handling, breakage, and so on per year
What is the economic order quantity? Round to the nearest whole number. $
$
A reams
B reams
C reams
D reams
E reams
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