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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 ie they sell replacement cartridges The demand for the cartridge is units per week, with a standard deviation of demand of units per day. The holding cost of the cartridge is $unityear while the ordering cost is $order The company works for weeks per year at days per week. The desired service level for this part is it takes 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 for a service level.
Safety Stock Z x SigmaLead Time
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