Question

Yellow​ Press, Inc., buys paper in​ 1,500-pound rolls for printing. Annual demand is rolls. The cost per roll is ​$​, and the annual holding cost is percent of the cost. Each order costs ​$. a. How many rolls should Yellow Press order at a​ time? Yellow Press should order nothing rolls at a time. ​(Enter your response rounded to the nearest whole​ number.) b. What is the time between​ orders? (Assume workdays per​ year.) The time between orders is nothing days. ​(Enter your response rounded to one decimal​ place.)

Answer 1

Answer:

A. 44 rolls at a time

B. 5.8 days

Explanation:

A. Calculation to determine How many rolls should Yellow Press order at a time

Using this formula

EOQ=√2*Annual demand*holding cost /Carrying cost

Let plug in the formula

EOQ=√2*2,750*$35/$625*16%

EOQ=√$192,500/100

EOQ=44 rolls at a time

Therefore How many rolls should Yellow Press order at a time is 44 rolls at a time

B. Calculation to determine time between orders

Time between orders=5.8 days