A local office supply store has an annual demand for 30,000 cases of photocopier paper per year. It costs
A. 837
B.
C. 1,183
D. 374
Final Answer: The optimum number of cases of photocopier paper per order is
Step 1 :The problem is asking for the optimal order quantity, which is a common problem in inventory management. The Economic Order Quantity (EOQ) model is typically used to determine the optimal order quantity that minimizes total inventory costs.
Step 2 :The EOQ formula is:
Step 3 :In this case, D = 30,000 cases, S =
Step 4 :Substituting the given values into the formula, we get:
Step 5 :The result from the calculation is approximately 1183.22. This means that the optimal order quantity is about 1183 cases of photocopier paper. However, since we cannot order a fraction of a case, we should round this number to the nearest whole number.
Step 6 :Final Answer: The optimum number of cases of photocopier paper per order is