d. The reorder point for the printer is____ printers.

The safety stock for the printer is ___

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 the safety stock, is?

The annual safety stock holding cost is?

f. Suppose officemax is able to cut the lead time to a constant 1 week.

The new safety stock level is ?

Average weekly demand (52 weeks per year): 56 printers Standard deviation of weekly demand: 7 printers Order lead time: 4 weeks Standard deviation of order lead time: 0 (lead times are constant) Item cost: $270 per printer Cost to place an order: $2 Yearly holding cost per printer: $54 Desired service level during reordering period: 95% (z = 1.65) One of the products sold by OfficeMax is a Hewlett-Packard LaserJet 299 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 15. (Enter your response rounded to the nearest whole number.) b. The annual ordering costs and holding costs (ignoring safety stock) for the EOQ is $ 793 . (Enter your response rounded to the nearest dollar.) c. Suppose OfficeMax currently orders 270 printers at a time. OfficeMax would pay $ 6367 less in holding and ordering costs per year if it ordered just 27 printers at a time. (Enter your response rounded to the nearest dollar.) + SSH 2