Question: Average weekly demand (52 weeks per year): 59 printers Standard deviation of weekly demand: 8 printers Order lead time: 4 weeks Standard deviation of order

Average weekly demand (52 weeks per year): 59Average weekly demand (52 weeks per year): 59

Average weekly demand (52 weeks per year): 59 printers Standard deviation of weekly demand: 8 printers Order lead time: 4 weeks Standard deviation of order lead time: 0 (lead times are constant) Item cost: $280 per printer Cost to place an order: $4 Yearly holding cost per printer: $51 Desired service level during reordering period: 90% (z = 1.28) One of the products sold by OfficeMax is a Hewlett-Packard LaserJet Z99 printer. As purchasing manager, you have the following information for the printer: Click the icon to view the information for the printer. a. The EOQ is 22. (Enter your response rounded to the nearest whole number.) b. The annual ordering costs and holding costs (ignoring safety stock) for the EOQ is $ 1119. (Enter your response rounded to the nearest dollar.) c. Suppose OfficeMax currently orders 280 printers at a time. OfficeMax would pay $ 6065 less in holding and ordering costs per year if it ordered just 28 printers at a time. (Enter your response rounded to the nearest dollar.) d. The reorder point for the printer is 257 printers. (Enter your response rounded up to the nearest whole number.) The safety stock for the printer is 21 printers. (Enter your response rounded up to the nearest whole number.) e. Use the following formula to consider the impact of safety stock (SS) on average inventory levels and annual holding costs: + SSH The annual inventory holding cost, including the safety stock, is $. (Enter your response rounded to the nearest dollar.)

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