Task: A paper company uses approximately 1000 cartons of paper a month. The company charges $30 delivery charge per order. The company charges $1.50 per carton per month to cover storage, deteriation etc... Please see part 1 and 2. The instructions were to fill out the table.
Part 1.
Order size 100 200 250 500
Order per month 10 5 4 2
Total order cost 300 150 120 60
Average inventory ? ? ? ?
Total carrying Costs ? ? ? ?
Total inventory costs ? ? ? ?
Part 2. Calculate the economic order quantity?