A car rental agency uses 96 boxes of staples a year. The boxes cost $4 each. It costs $10 to order staples, and it costs $0.80 to hold a box of staples in inventory for 1 year. Using the order size that minimizes the car rental agency's combined order- ing and holding costs for staples, how long will a single order of staples last the agency, before it must receive more staples? (Assume there are 52 weeks in the year for the car rental agency.)
A car rental agency uses 96 boxes of staples a year. The boxes cost $4 each. It costs $10 to order staples, and it costs $0.80 to hold a box of staples in inventory for 1 year. Using the order size that minimizes the car rental agency's combined order- ing and holding costs for staples, how long will a single order of staples last the agency, before it must receive more staples? (Assume there are 52 weeks in the year for the car rental agency.)
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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![A car rental agency uses 96 boxes of staples a year. The boxes cost $4 each. It costs
$10 to order staples, and it costs $0.80 to hold a box of staples in inventory for
1 year. Using the order size that minimizes the car rental agency's combined order-
ing and holding costs for staples, how long will a single order of staples last the
agency, before it must receive more staples? (Assume there are 52 weeks in the year
for the car rental agency.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe167d264-a3c1-48f5-8800-e9b0b9115946%2F4b125dc1-704b-4960-867b-5a30bdee322d%2Fsctn2qr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A car rental agency uses 96 boxes of staples a year. The boxes cost $4 each. It costs
$10 to order staples, and it costs $0.80 to hold a box of staples in inventory for
1 year. Using the order size that minimizes the car rental agency's combined order-
ing and holding costs for staples, how long will a single order of staples last the
agency, before it must receive more staples? (Assume there are 52 weeks in the year
for the car rental agency.)
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