High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers. A fixed-order-quantity inventory control system (FQS) helps monitor and control these SKUs. The following information is for one of the calculators that High Tech stocks, sells, and ships.

Average demand	9.5 calculators per week
Lead time	5 weeks
Order cost	$21/order
Unit cost	$10.00
Carrying charge rate	0.15
Number of weeks	52 weeks per year
Standard deviation of weekly demand	5.50 calculators
SKU service level	95 percent
Current on-hand inventory	35 calculators
Scheduled receipts	17 calculators
Backorders	1 calculators

1. What are the economic order quantity? Round your answer to the nearest whole number.

   ___________ calculators

2. What are the total annual order and inventory-holding costs for the EOQ? Use the rounded EOQ value in your calculations. Do not round any other intermediate calculations. Round your answer to the nearest dollar.

   $ ___________

3. What is the reorder point without safety stock? Round your answer to the nearest whole number.

   ____________ calculators

4. What is the reorder point with safety stock? Use Appendix A to determine z-value. Round z-value to two decimal places. Do not round any other intermediate calculations. Round your answer to the nearest whole number.

   _______________ calculators

5. Based on the previous information, should a fixed-order quantity be placed? Consider the reorder point with safety stock. Round your answer to the nearest whole number.

   A fixed-order quantity (should, should not) be placed because the inventory position of ___________ calculators is (higher than, lower than, equal to) I the reorder point with safety stock.

appendix A

2 0 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.50000 0 50399 050796 051197 051595 051994 0.52392 052790 053188 053586 01 053983 0.54380 0.54776 0.55172 0.55567 0.55962 056356 056749 057162 0.57535 02 0.57926 058317 0.58706 0.59095 0.59483 0.59871 0.60257 060642 061026 061409 03 0.61791 0.62172 0.62552 0.62930 0.6307 063683 0.64058 0.64431 0.64805 065173 04 0.65542 0.65910 0.66276 0.6640 0.67003 0.67364 0.67724 068082 0.68439 0.68795 0.69146 0.69497 0.69847 0.70194 0.70540 0.70884 0.71226 0.71566 0.71904 0.72240 05 0.6 0.72575 0.72907 0.73237 0.73565 0.73891 0.74215 0.74537 0.74857 0.75175 0.75.490 07 0.75804 0.76 15 0.76424 0.76730 0.77035 0.77337 0.7637 0.77935 0.78230 0.78524 08 0.78814 0.79105 0.79389 0.79673 0.79955 0.80234 0.805 0.80785 081057 081327 09 081594 0.81859 0.82121 0.82381 082639 082894 0.83147 0.8398 083646 08389 1 084134 084375 0.84614 0.84849 0.85083 085314 08543 0.85769 0859 086216 11 0.86433 086650 0.86864 087076 087286 0.87493 0.87698 087900 088100 188298 12 082493 088686 0.8877 089065 089257 0.89435 0.89617 0897% 0.89975 09047 13 0.90320 0.90490 090658 0.90824 0.90988 09149 0.91309 091466 091621 199774 14 0.91924 092073 092220 092364 0.92507 0.92647 092785 092922 093056 093189 1. 093319 093448 093574 0.93699 0.93822 0.93943 0.94062 0.91179 094295 0.9440g 6 0.91520 0.9460 0.94728 094845 0.94950 095053 095154 095254 0.94 352 09549 10.95543 195637 0.95728 0.95318 0.95907 0.95994 0.96080 0.96 16 0.96246 096327 18 10.9640706485 096562 196638 09671215784 0.96856 0.96926 0.9%995 097062 1.9 097128 097193 097257 097320 0973809744 097500 097558 0.97615 097670 0.97/25 09778 0.97831 0.97882 0.97932 097962 098030 0.98077 098124 098169 2