One of the products sold by OfficeMax is an HP LaserJet Z99. As a purchasing manager.
A. What is the EOQ?
B. The total yearly holding cost and total yearly ordering cost are calculated as follows
C. Suppose OfficeMax currently orders 180 printers at a time. How much more or less would OfficeMax pay in holding and ordering costs per year if ordered just 18 printers at a time?

 

Transcribed Image Text:

Average weekly demand (52 weeks per year): Standard deviation of weekly demand: Order lead time: Standard deviation of order lead time: Item cost: Cost to place an order: Yearly holding cost per printer: Desired service level during reordering period: 40 printers 9 printers 4 weeks 0 (lead times are constant) $230 per printer $5 $37 99% (z = 2.33) Average weekly demand (52 weeks per year): Standard deviation of weekly demand: Order lead time: Standard deviation of order lead time: Item cost: Cost to place an order: Yearly holding cost per printer: Desired service level during reordering period: 40 printers 9 printers 4 weeks 0 (lead times are constant) $230 per printer $5 $37 99% (z = 2.33)

Answer rating: 100% (QA)

a Annual Demand D 40 x 52 2080 printers Ordering cost S 5 Annual holding cost per printer H 37 EOQ 2... View the full answer