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Question: Burgerama requires all food-handling employees to wear latex gloves. The annual demand for gloves is 250 boxes of 200 per year. The order cost is $11 per order, and the carrying cost is 25 percent, per box, per year of the purhcase cost of $20 per box.

a) How many boxes of gloves should Burgerama order at one time?

b) What is the time between orders?

c) What would be the change in annual cost if Burgerama had storage space for only 15 boxes per order; thus, was forced to use an order qunatity of 15? Please show/explain how you arrive at your solution(s).

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Basic Finance, Finance

Category:- Basic Finance
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