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Central University Uses $123,000 of a Particular Toner Cartridge for Laser

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Central University uses $123,000 of a particular toner cartridge for laser printers in the student computer labs each year. The purchasing director of the university estimates the ordering cost at $45 and thinks that the university can hold this type of inventory at an annual storage cost of 22% of the purchase price. How many months' supply should the purchasing director order at one time to minimize the total annual cost of purchasing and carrying?


Definitions:

Type B

A personality type characterized by a generally laid-back, relaxed, and less competitive attitude towards life, in contrast to the more stressed and aggressive Type A personality.

Type C

A personality style characterized by emotional expression, suppression, and an increased risk of stress-related illnesses.

Immune System

A complex network of cells, tissues, and organs in the body that works to defend against infectious diseases and foreign invaders.

Stress

A psychological and physical response to demands or threats, which can affect mental health and overall well-being.

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