Compute the total annual cost utilizing your order size

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Reference no: EM1377464

Q. A large law industry uses an average of 45 boxes of copier paper a day. The industry operates 257 days a year. Storage also handling costs for the paper are $31 a year per box also it costs approximately $64 to order also receive a shipment of paper.

a. Illustrate what order size would minimize the sum of annual ordering also carrying costs?
(Round your answer to the nearest whole number)

b. Compute the total annual cost utilizing your order size from part a.
(Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

c. The office manager is currently utilizing an order size of 202 boxes. The partners of the industry expect the office to be managed "in a cost-efficient manner." Would you recommend which the office manager use the optimal order size instead of 202 boxes? Justify your answer.

Reference no: EM1377464

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