Andre candess manages an office supply store. one product in the store is computer paper. andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. there are 250 working days per year and the lead-time is 3 days. the cost of placing an order is $30, while the holding cost is $15 per box per year. if andre orders 500 boxes each time he orders from his supplier, what would his total annual inventory cost be (holding cost plus ordering cost)?

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.