Nanonisa is a purchasing manager at Changloon Photocopy Company. She usually orders A4 papers in boxes of 500 sheets from a paper supplier. The company uses 150, 000 sheets in first six months and 20% more in another six months. Annual carrying costs are $3 per semi-annual and ordering costs are $28 per year. The following discount price schedule is provided by the paper supply company. Calculate:

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Order Quantity (boxes)

Harga setiap kotak $

Price per box $

100 – 999


1000 – 2999


3000 – 5999


6000 +


A) The optimal order quantity.

B) What are the total annual inventory costs?

C) Based on answer (b) what will be the decision

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