A large law firm uses an average of 40 boxes of copier paper a day The firm oper

Question

A large law firm uses an average of 40 boxes of copier paper a day The firm operates 260 days a year Storage and handling costs for the paper are $30 a year per box. and it costs approximately $60 to order and receive a shipment of paper It takes 10 days to receive a new box of paper When should the office reorder copy paper? When there are 300 boxes of paper left in the office. When there are 400 boxes of paper left in the office. When there are '04 000 boxes of paper left in the office. When there are 600 boxes of paper left in the office

Explanation / Answer

Option B, when there are 400 boxes of paper left in the office

Reorder Point = dL

d= demand rate per period

L= lead time

d=40 boxes per day

L= 10 days

R= 40 * 10

= 400 boxes

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