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In: Operations Management

Stanley’s typists use 770 reams of paper per month, at a cost of $10 per ream....

Stanley’s typists use 770 reams of paper per month, at a cost of $10 per ream. He pays a fixed cost of $28 each time he orders paper. The carrying cost (per ream per year) is 35% of the purchase price. Stanley is currently ordering paper each month, with the number of reams used per month as the order quantity. How much would Stanley save each year, if he used the EOQ?

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keosha answered 2 months ago
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