An accounting firm uses an average of 40 boxes of copier paper per day and the firm operates 260 days per year. Storage and handling costs for the paperaer $30 per year per bos and it costs approximately $60 to order and receive a shipment of paper.
a. What order size would minimize the sum of annual ordering and carrying costs?
b.Compute the total annual cost using your order size from part a.
c. Except for rounding, are annual ordering and carrying costs equal at the EOQ?