A distribution center operates for a major electronics company that fulfills orders that customers make from the website. (15 pts.) Estimated annual demand: 16,936 laptops (50 weeks per year) Cost: $840 per laptop Lead Time: 5 weeks Standard deviation of weekly demand: laptops Standard deviation of lead time: 0.9 weeks Holding cost per unit per year: 60% of item cost Ordering cost: $37 per order Desired service level: 98% (z=2.05) Calculate the reorder point and the safety stock? Note that you need to convert the annual demand to weekly demand based on 50 wks/yr.

Estimated annual demand: 16,936 laptops (50 weeks per year) Cost: 5840 per laptop Lead time: 5 weeks Standard deviation of weekly demand: 14 laptops Standard deviation of lead time: 0.9 weeks Holding cost per unit per year: 60% of item cost Ordering cost: $37 per order Desired service level: 98% (z = 2.05)