Step 1b: Find inventory cost and procurement cost Unit Expos Annual Total proc. Weekly demand Lead ure Demand during Safety pipeline Avg. cycle % shipping Weekly time Period EP stock Total inv. holding weekly cost per shipping weekly cost inv. inv. inv. cost (EP) item cost cost cost (E/unit) mean s.d. mean s.d. (units) (units) (wks) (wks) (units) (units) (units) (units) (units) (units) (E/wk) (E/ unit) (6/wk) (E/wk) Weekly cost Stock DVD in Fra 10 250 42 0.5 20% DVD Total Stock DVD in Ger 10 700 86 0.5 20% Stock LCD in Fra 400 19 2 40% LCD Total Stock LCD in Ger 400 14 5 2 40% Stock GPS in Fra 800 2.09 0.5 30% GPS Total Stock GPS in Ger 800 2.09 0.5 4 30%