Question: manager, you have the following information for the printer: Average weekly demand (52 weeks per year): 60 printers Standard deviation of weekly demand: 12 printers

manager, you have the following information for the printer: Average weekly demand (52 weeks per year): 60 printers Standard deviation of weekly demand: 12 printers Order lead time: 3 weeks Standard deviation of order lead time: 0 (lead times are constant) Item cost: $120 per printer Cost to place an order: $2 Yearly holding cost per printer: $48 Desired service level during reordering period: 99% (z = 2.33) D.) (**) What is the reorder point for the printer? How much of the reorder point consists of safety stock? For parts e and f, use the following formula to consider the impact of safety stock (SS) on average inventory levels and annual holding costs: (Q2+SS)H E.) (***) What is the annual cost of holding inventory, including the safety stock? How much of this cost is due to the safety stock? F.) (***) Suppose OfficeMax is able to cut the lead time to a constant 1 week. What would the new safety stock level be? How much would this reduce annual holding costs? Predictions: On Accessibility: Good to go DFocus
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