St Mary's University uses $148,000 of a particular paper product for printers in the student computer labs each year. The purchasing director of the university estimates the ordering cost at $34 and thinks that the university can hold this type of inventory at an annual storage cost of 18% of the purchase price of $5 each. How many months' supply should the purchasing director order at one time to minimize the total annual cost of purchasing and carrying?

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The Answer of St Mary's University uses $148,000 of a particular paper product for printers in the student computer labs each year. The purchasing director of the university estimates the ordering cost at $34 and thinks that the university can hold this type of inventory at an annual storage cost of 18% of the purchase price of $5 each. How many months' supply should the purchasing director order at one time to minimize the total annual cost of purchasing and carrying?

St Mary's University Uses $148,000 of a Particular Paper Product