Question $2$

Problem $778404$:

Do not include anything other than numbers in your responses. For example, do not include comma

or dollar sign in your numbers. As a rule of thumb, keep $2$ decimal places for larger numbers and $3$

decimal places for smaller numbers less than $1.$

A small copy center uses approximately $26$ boxes of copy paper a week. Experience suggests that

usage can be well approximated by a normal distribution with a standard deviation of $8$ box per week.

$2$ weeks are required to fill an order for letterhead stationery. Ordering cost is $$4,$ and annual holding

cost is $$0\mathrm{.}61$ per box. The manager's desired service level is $0\mathrm{.}7.$ Assume a year is $52$ weeks.

How much is the annual demand rate?

How much is the optimal order quantity? $($keep two decimal places$)$

How many times a year the copy center place a new order of papers? $($keep two decimal places$)$

How many weeks does each order of paper last?

Compute the total annual cost of ordering and carrying boxes of papers:

What is the $Z$ value for the desired service level?

How much safety stock is needed to provide the desired service level?

What is the ROP for the desired service level?