s (5) Points each You MUST show your work to get credit for the problems Yellow
ID: 329239 • Letter: S
Question
s (5) Points each You MUST show your work to get credit for the problems Yellow Press, Inc, buys paper in 1,500-pound rolls for printing. Annual demand is 2,500 rolls. The cost per roll is $800, and the annual holding cost is $120 per roll. Each order costs $50 to process 31. How many rolls should Yellow Press, Inc, order at a time? Hint: Economic order quantity ( EOO) Round up the number of rolls. rolls per roll per order 2DS rolls 32. What is the time between orders? Round to four decimals. yearsExplanation / Answer
31) D = Annual demand = 2500 rolls
H = Holding cost = $120 per roll
S = Ordering cost = $50 per order
EOQ = Sqrt of (2DS / H)
= sqrt of [(2 x 2500 x 50)/120]
= sqrt of (250000/120)
= 45.64 or rounded to 46 rolls
32) Time between orders = Q/D = 46/2500 = 0.0184 years
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