Problem $12-26($Algo$)$

A small copy center uses $4580-$sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a

normal distribution with a mean of $4$ boxes per week and a standard deviation of $40$ box per week. $2$ weeks are required to fill an

order for letterhead stationery. Ordering cost is $$4,$ and annual holding cost is $36$ cents per box.

Use Table.

a$.$ Determine the economic order quantity, assuming a $52-$week year. $($Round your answer to the nearest whole number.$)$

EOQ

boxes

b$.$ If the copy center reorders when the supply on hand is $9$ boxes, compute the risk of a stockout. $($Round $"$z$"$ value to $2$ decimal

places and final answer to $4$ decimal places.$)$

Risk

c$.$ If a fixed interval of $8$ weeks is used for ordering instead of an ROP, how many boxes should be ordered if there are currently $26$

boxes on hand, and an acceptable stockout risk for the order cycle is $\mathrm{.}0228?($Round $"$z$"$ value to $2$ decimal places and final answer

to the nearest whole number.$)$