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. How many boxes of staples should the car rental company order each time it needs staples, to minimize the combined ordering and holding costs for staples?

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. How many boxes of staples should the car rental company order each time it needs staples, to minimize the combined ordering and holding costs for staples?

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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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
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