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Introduction to Management Science 12th Edition by Bernard Taylor
Edition 12ISBN: 978-0133778847Introduction to Management Science 12th Edition by Bernard Taylor
Edition 12ISBN: 978-0133778847 Exercise 7
Determine the optimal order quantity and total annual inventory cost for boxes of stationery in Problem if the carrying cost is 20% of the price of a box of stationery.
Problem
The office manager for the Gotham Life Insurance Company orders letterhead stationery from an office products firm in boxes of 500 sheets. The company uses 6,500 boxes per year. Annual carrying costs are $3 per box, and ordering costs are $28. The following discount price schedule is provided by the office supply company:
Determine the optimal order quantity and the total annual inventory cost.
Problem
The office manager for the Gotham Life Insurance Company orders letterhead stationery from an office products firm in boxes of 500 sheets. The company uses 6,500 boxes per year. Annual carrying costs are $3 per box, and ordering costs are $28. The following discount price schedule is provided by the office supply company:
Determine the optimal order quantity and the total annual inventory cost.Explanation
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The Optimal Order Quantity (
), for a ...
Introduction to Management Science 12th Edition by Bernard Taylor
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