(See Steps) Metro life orders letterhead stationary from an office products firm in boxes of 500 sheets. The company uses 6500 boxes per year. Annual carrying
Question: Metro life orders letterhead stationary from an office products firm in boxes of 500 sheets. The company uses 6500 boxes per year. Annual carrying costs are $3.00 per box, and ordering costs are $28. The following discount price schedule is provided below:
Order Quantity (Boxes) Price per box
200 – 999 $16.00
1000 – 2999 14.00
3000 – 5999 13.00
6000 + 12.00
Determine the optimal order quantity and total annual inventory cost for boxes of stationary if the carrying cost is 20% of the price of a box of stationary.
Deliverable: Word Document 
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