1. The current order quantity for Paul’s Pasta Pinwheels is 200 boxes. The order cost is $4 per order, the holding cost is $.40 per box per year, and the annual demand is 500 boxes per year.
a. Calculate the annual holding cost plus the annual ordering cost to get the total costs when using an order quantity of 200 boxes.
b. Calculate the EOQ and the total annual cost for this order quantity.
2. Hottenstien, Giffith, and Hult, attorneys at law, do a great deal of printing. The firm uses a single type of printer with annual demand for print cartridges of 480 per year. The order cost is $15 per order, and the carrying cost is20 percent per cartridge per year of the purchase cost of $35 per cartridge.
a. How many print cartridges should the firm order at one time?
b. What is the time between orders?
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