Our home construction company buys nails in 15-pound boxes. We use an average of 2008 boxes a year. The vendor that makes the nails can produce 45 boxes per day while our usage is 4 boxes per day. It costs $2.00 to place the typical order. Annual carrying costs are $1.35 per box.
What will be our average number of boxes on hand if we order the EOQ bags in each order