Question: Can someone please explain how to calculate part e? and part f? Question e: use the following formula to consider the impact of safety stock
Can someone please explain how to calculate part e? and part f? Question e: use the following formula to consider the impact of safety stock (SS) on average inventory levels and annual holding costs. The annual inventory holding cost, including safety stock, is? question f: suppose OfficeMax is able to cut the lead time to a constant 1 week. the new safety stock level is? The cutting the lead time would reduce annual holding costs by? I am assuming the answer of $8,211 is correct; however, I'm not sure. I'm just going through practice problems to understand the concepts.
Click the icon to view the information for the printer. a. The EOQ is (Enter your response rounded to the nearest whale number.) b. The annual ordering costs and holding costs (ignoring safety stock) for the EOQ is $ (Enter your response rounded to the nearest dollar.) c. Suppose OfriceMax currently orders 280 printers at a time. OfficeMax would pay 4 less in holding and ordering costs per year if it ordered just 28 printers at a time. (Enter your response rounded to the nearest doilar d. The reorder point for the printer is printers. (Enter your response rounded up to the nearest whole number.) The safety stock for the printer is 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: (2Q+SS)H The annual inventory holding cost, including the safety stock, is S (Enter your response rounded to the nearest dollar.) The annual safety stock holding cost is $ . (Enter your response rounded to the neavest dollar.) f. Suppose OfficeMax is able to cut the lead time to a constant 1 week. The new safety stock level is (Enter your response rounded up to the nearest whale number.) The cutting the lead time would reduce the annual holding costs by $ (Enter your response rounded to the nearest dollar.)
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