A big regulation firm uses an average of 40 boxes of copier paper a day. The firm operates 260 days a year. Storage and dealing with costs for the paper are \$ 30 a year per box, and it prices approximately \$ 60 to order and also get a distribution of paper.

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a. What order dimension would minimize the sum of yearly ordering and also moving costs?

b. Compute the total yearly expense using your order size from component a.

c. Except for rounding, are yearly ordering and also delivering prices constantly equal at the EOQ?

d. The office manager is presently using an order size of 200 boxes. The partners of the firm suppose the office to be regulated “ in a cost- reliable manner.” Would you recommend that the office manager usage the optimal order size rather of 200 boxes? Justify your answer.

A
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