Officemax is considering using the internet to order, Operation Management

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Officemax is considering using the internet to order

OfficeMax is considering using the Internet to order printers from Hewlett-Packard. The change is expected to make the cost of placing orders drop to almost nothing, although the lead time will remain the same. Using EOQ, ROP, and the TAC formulas, what happens to…

A. The order quantity?

B. The holding costs for the year?

C. The ordering costs for the year?

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Operation Management: Officemax is considering using the internet to order

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Operation Management: Officemax is considering using the internet to order

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