Paper is used at a constant rate in an office, at the rate of 10 reams a week. The price of a ream of paper is $8. Order cost is $5 per order, and holding cost is $0.50 per ream per year.
a. If we order 40 reams at a time, what is the holding cost, order cost, and total cost in a year? (do not include the purchase price). How often do we order?
Categories: