How many orders per year will the company place using the


A company uses 240 boxes of typing paper each year. The company is trying to determine its optimal order quantity that will minimize its total inventory costs. Each time an order is placed, it costs the company approximately $24 in shipping, receiving and inspecting the goods upon arrival. Since storage space is at premium, the company estimates that it incurs a cost of $20 per box per year. How many orders per year will the company place using the optimal order quantity?

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Operation Management: How many orders per year will the company place using the
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