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Q. A large law industry uses an average of 480 boxes of copier paper a day. The industry operates 250 days a year. Storage also handling costs for the paper are $30 a year per box, also it costs approximately $20 to order also receive a shipment of paper.
a. Illustrate what order size would minimize the sum of the annual ordering also carrying costs?
b. Compute the annual carrying cost utilizing your order size derived from above.
c. Illustrate what is the inventory cycle time?
d. Illustrate what is the average inventory level throughout the year?
e. Explain how many orders will there be in a year?
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