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HP Company supplies ink cartridges for printers on the aftermarket ( i . e . they sell replacement cartridges ) . The demand for the

HP Company supplies ink cartridges for printers on the aftermarket (i.e. they sell replacement cartridges). The demand for the cartridge is 400 units per week, with a standard deviation of demand of 33.5 units per day. The holding cost of the cartridge is $5/unit/year while the ordering cost is $100/order. The company works for 50 weeks per year at 5 days per week. The desired service level for this part is 99%, it takes 5 days to get it from the supplier. The company is investigating the possibility of implementing a continuous review (EOQ) inventory system.
In the abve case, how much safety stock should be carried in the continuous review system described above (rounded up to the nearest whole number)? The z score from the normal distribution chart is 2.33, for a 99% service level.
Safety Stock = Z x Sigma(Lead Time)

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