Chapter 6

1. The current order quantity for Paul's Pasta Pinwheels is 20 boxes. The oder cost is $4 per oder, the holding cost is $0.40 per box per year  and the annual deamand is 500 boxes per year.

A. Caluculate the anual holding cost plus the annual ordering cost to get the total annual cost when using an order quantitly of 200 boxes. 

B. Calculate the EOQ and the total annual cost for this order quantity. 

2. Hottenstein, Giffith, and Hult, attorneys at law, do a great deal of priniting. The firm uses a single type of printer with annual deamand for print cartrides of 480 per year. The order cost is $15 per order and the carrying cost is 20 percent per cartridge per year of the purchase cost of $35 per cartidge. 

A. How many print cartridges should the firm order at one time?

B. What is the time between orders?