The office manager for the Gotham Life Insurance Company ordersletterhead stationery from an office products firm in boxes of 500sheets. The company uses 6,500 boxes per year. Annual carryingcosts are $3 per box, and ordering costs are $28. The followingdiscount price schedule is provided by the office supply company:Order Quantity (in boxes) Price per Box 200-999 $16 1000-2999 143000-5999 13 6000+ 12 a. Determine the optimal order quantity andthe total annual inventory cost. b. Determine the optimal orderquantity and total annual inventory cost for boxes of stationery ifthe carrying cost is 20% of the price of a box of stationery.
Please put answers in the excel format.
| | | ORDERING | ORDERING | ORDERING | ORDERING |
| | | EOQ | 1,000 | 3,000 | 6,000 |
| | = | | | | |
| | | | | | |
| Average inventory = | | | | |
| | | | | | |
| Annual carrying cost = | | | | |
| | | | | | |
| Number of orders = | | | | |
| | | | | | |
| Annual order cost = | | | | |
| | | | | | |
| Total inventory purchase cost | | | | |
| | | | | | |
| Total inventory cost = | | | | |
