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Fush uses an average of 40 boxes of paper serviettes a day. The restaurant operates 260 days per year, storage and handling costs for the serviettes are $ 30 per year per box, and it costs approximately $60 to order and receive a shipment of serviettes.  Except for rounding, are annual ordering costs and carrying costs always equal at the EOQ? The manager is currently using an order size of 200 boxes, but wants to make sure he is managing supplies "in a cost efficient manner". Would you recommend that the manager use the optimal order size instead of 200 boxes

Fush uses an average of 40 boxes of paper serviettes a day. The restaurant operates 260 days per year, storage and handling costs for the serviettes are $ 30 per year per box, and it costs approximately $60 to order and receive a shipment of serviettes.  Except for rounding, are annual ordering costs and carrying costs always equal at the EOQ? The manager is currently using an order size of 200 boxes, but wants to make sure he is managing supplies "in a cost efficient manner". Would you recommend that the manager use the optimal order size instead of 200 boxes

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Fush uses an average of 40 boxes of paper serviettes a day. The restaurant operates 260 days per year, storage and handling costs for the serviettes are $ 30 per year per box, and it costs approximately $60 to order and receive a shipment of serviettes.

 Except for rounding, are annual ordering costs and carrying costs always equal at the EOQ?

The manager is currently using an order size of 200 boxes, but wants to make sure he is managing supplies "in a cost efficient manner". Would you recommend that the manager use the optimal order size instead of 200 boxes?

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