Question: A small copy center uses 5 5 0 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.
Determine the economic order quantity, assuming a week year. Round your answer to the nearest whole number.
EOQ
boxes
b If the copy center reorders when the supply on hand is boxes, compute the risk of a stockout. Round value to decimal places and final answer to decimal places.
Risk
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
