Question: A small copy center uses 4 4 5 0 - sheet boxes of copy paper a week. Experience suggests that usage can be well approximated
A small copy center uses sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a
normal distribution with a mean of boxes per week and a standard deviation of box per week. weeks are required to fill an order
for letterhead stationery. Ordering cost is $ and annual holding cost is cents per box.
Use Table.
a Determine the economic order quantity, assuming a week year.
Note: Round your answer to the nearest whole number.
Answer is complete and correct.
EOQ
boxes
b If the copy center reorders when the supply on hand is boxes, compute the risk of a stockout.
Note: Round value to decimal places and final answer to decimal places.
Answer is complete but not entirely correct.
Risk
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