What are the z-values for service levels of 80, 83, 88, 93, and 97 percent, assuming demand is normally distributed? Round your answers to two decimal places.

JAZ Medical Supplies is implementing a new economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO); i.e, the order cost Co. It takes four total labor hours to process a PO. The average number of SKUs on a PO is four. The average wage for people working in the purchasing department is $19 per hour plus employee benefits of $3 per hour. Fixed costs for the purchasing department are $310,000 per year assuming 1,476 hours per employee per year workweek. Given this information, what is a good estimate of Co per SKU to use in an EOQ model? Round your answer to the nearest dollar.

Answer rating: 100% (QA)

To find the estimate of the cost to process a purchase orde... View the full answer