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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: image text in transcribed The annual inventory holding cost, including the safety stock, is?

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