Office Supplies, Inc., would like to reduce its inventory cost by determining the optimal number of paper punches to obtain per order. The annual demand

Office Supplies, Inc., would like to reduce its inventory cost by determining the optimal number of paper punches to obtain per order. The annual demand for paper punches is 20,000 units. The ordering cost is $100 per order, and the carrying cost is $5 per unit per year. Compute the economic order quantity. b) The setup cost is $100 per order, and the carrying cost is $5 per unit per year. If the demand rate is 100 units per day, and the production rate is 150 units per day. Determine the economic lot size. c) The company has found a supplier of hole punches that offers quantity discounts. The annual demand is 20,000 units, the ordering cost is $100 per order, and the carrying cost is 0.5 of the unit price. For quantities that vary from 0 to 1,999, the unit price is $10. The price is $9.98 for quantities ranging from 2,000 units to 3,999 units and $9.96 for quantities that vary from 4,000 to 10,000 units. Should Office Supplies, Inc. take the quantity discount?

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