Question: Inventory Management Problem 1: A small copy center uses five 500-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated

Inventory Management Problem 1: A small copy
Inventory Management Problem 1: A small copy center uses five 500-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a normal distribution with a mean of five boxes per week and a standard deviation of one-half box per week. Two weeks are required to fill an order for letterhead stationery. Ordering cost is $2, and annual holding cost is 20 cents per box. (a) Determine the economic order quantity, assuming a 52-week year. (b) If the copy center reorders when the supply on hand is 12 boxes, compute the risk of a stockout

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