A Restaurant's Napkin Ordering Optimization

Optimizing Napkin Orders for a Restaurant

A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate. The cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00. If the restaurant orders the optimal (EOQ) number of boxes each time an order is placed, then the number of orders placed during the year would be.

Question:

What is the number of orders placed during the year if the restaurant orders the optimal number of boxes each time?

Answer:

xr72*444

Explanation:

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