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One of the products sold by OfficeMax is a Hewlett-Packard LaserJet Z99 printer. As purchasing manager, you have the following information for the printer: Average
One of the products sold by OfficeMax is a Hewlett-Packard LaserJet Z99 printer. As purchasing manager, you have the following information for the printer:
Average weekly demand (53 weeks per year) | 53 printers |
Standard deviation of weekly demand | 17 printers |
Order lead time | 2 weeks |
Standard deviation of order lead time | 0 |
item cost | $130 per printer |
Cost to place an order | $1 |
Yearly holding cost per printer | $30 |
Desired services level during reordering period | 95% (z = 1.65) |
Use the following formula to consider the impact of safety stock (SS) on average inventory levels and annual holding costs: The annual inventory holding cost, including the safety stock, is?
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