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I sent a photo of my question and still have not received an answer to it. Here is the question A small copy center uses
I sent a photo of my question and still have not received an answer to it.
Here is the question
A small copy center uses five 500 sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a normal distribution with a mean of five boxes per week and a standard deviation of .50 box per week. Two weeks are required to fill an order for letterhead stationery ordering cost is five dollars and an annual holding cost is $.35 per box.
a.determine the economic order quantity, assuming a 52 week year the answer to the EOQ is 86 boxes.
b. if the copy center re-orders when the supply on hand is 11 boxes, compute the risk of a stock out round Z value to two decimal places and a final answer to four decimal places. What is the risk?
c. if a fixed interval of seven weeks is used for ordering instead of an ROP, how many boxes should be ordered if there are currently 25 boxes on hand, and an acceptable stock at risk for the order cycle is .0228? round Z value to two decimal places and a final answer to the nearest whole number. What is QO?
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