Question: Gateway Book printers purchases paper from wiscoinsin mills. gateway requires 3,000,000 pounds of paper per year. The cost per order for the company is 1,200; the cost of holding 1 pound of paper in inventory is .08 per year. gateway operates 312 days per year. lead time is 15 days.
What is gateway's optimal number of orders per year?
what is gateway's optimal time between orders?
Gateway routinely runs out of shortage space in their warehouse for paper, so they decided to build a new paper warehouse. what is the optimal size for the new paper warehouse?