What is the optimal order quantity for inkjet


Solve the below problem:

Q: Suppose my office uses ten different kinds of inkjet printers, and as a result I need to maintain inventory of ten different types of ink cartridges. This is a large office, and the average demand for each type of cartridge is 15 cartridges per month. My ordering cost is $10.00 per order, and the carrying cost is $2.00 per cartridge per month.

Suppose in the problem above I could standardize the printers being used, so that all of the printers in my office all use the same inkjet cartridge. Now, instead of 10 different cartridges each having demand of 15 per month, I have one type of cartridge that experiences demand of 150 cartridges per month. What is the optimal order quantity for this standardized inkjet cartridge? How does the total annual ordering plus carrying cost compare to the total cost from problem? Explain.

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Operation Research: What is the optimal order quantity for inkjet
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