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The Wallace Stationary Company purchases paper from the Seaboard Paper Company. Wallace produces stationary that require 1,415,000 sq. yards of stationary per year. The cost per order for the company is $2,200; the cost of holding 1 yard of paper in inventory is $0.08 per year. Determine the following:

a. Economic order quantity

B. Minimum total annual cost

c. Optimal number of orders per year

d. Optimal time between orders

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91411146

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