Chimney Stack Printers (CSP) is in the business of printing and photocopying. One of the most...

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Chimney Stack Printers (CSP) is in the business of printing and photocopying. One of the most important items in their business is printing paper. CSP operates 360 days per year. Daily demand for paper is normally distributed with a mean of 125 boxes and a standard deviation of 27 boxes. CSP manages its paper inventory using a fixed order quantity model with safety stock. Purchase cost per box of paper is $6.25 and the annual carrying cost per box is 18% of cost. A fixed cost of $47 is incurred each time an order is placed for paper. The lead time between placing and receiving an order is four days. a) b) If, on average, a maximum of 1.50% probability of stocking out is desired, what would be the appropriate safety stock quantity? (Roundup the final answer to the nearest integer) What is the average annual inventory holding cost? For the succeeding parts 'd', and 'e', suppose that the inventory policy is changed so that orders are placed every 12 working days. d) How many boxes of paper should be ordered in order to minimize inventory related costs? (Roundup the final answer to the nearest integer) e) Assuming that on average a maximum of 3.72% probability of stocking out continues to be desired, what would be the appropriate safety stock quantity? (Round the final answer to the nearest integer) If there are 173 boxes of papers on hand at the time an order is placed, how many units should be ordered? (Roundup the final answers to the nearest integer) Chimney Stack Printers (CSP) is in the business of printing and photocopying. One of the most important items in their business is printing paper. CSP operates 360 days per year. Daily demand for paper is normally distributed with a mean of 125 boxes and a standard deviation of 27 boxes. CSP manages its paper inventory using a fixed order quantity model with safety stock. Purchase cost per box of paper is $6.25 and the annual carrying cost per box is 18% of cost. A fixed cost of $47 is incurred each time an order is placed for paper. The lead time between placing and receiving an order is four days. a) b) If, on average, a maximum of 1.50% probability of stocking out is desired, what would be the appropriate safety stock quantity? (Roundup the final answer to the nearest integer) What is the average annual inventory holding cost? For the succeeding parts 'd', and 'e', suppose that the inventory policy is changed so that orders are placed every 12 working days. d) How many boxes of paper should be ordered in order to minimize inventory related costs? (Roundup the final answer to the nearest integer) e) Assuming that on average a maximum of 3.72% probability of stocking out continues to be desired, what would be the appropriate safety stock quantity? (Round the final answer to the nearest integer) If there are 173 boxes of papers on hand at the time an order is placed, how many units should be ordered? (Roundup the final answers to the nearest integer)

Answer rating: 100% (QA)

Here are the answers to the questions a 113 boxes b 15 boxes c 155128 d 22 boxes e 132 boxes The det... View the full answer