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Please help with B, C, & E Tax Preparers Inc. works 280 days per year. The company uses adding machine tape at a rate of
Please help with B, C, & E
Tax Preparers Inc. works 280 days per year. The company uses adding machine tape at a rate of 5 rolls per day. Usage is believed to be normally distributed with a standard deviation of 3 rolls during lead time. The cost of ordering the tape is $18 and holding costs are $0.21 per roll per year. Lead time is 2 days. (a) Calculate the economic order quantity. (Round up your answer to the nearest whole number, e.g. 125.) Economic order quantity = (b) What reorder point will provide an order-cycle service level of 97 percent? (Round up your answer to the nearest whole number, e.g. 125.) Reorder point = tapes (c) How much safety stock must the company hold to have a 97 percent order-cycle service level? (Round answer to 2 decimal places, c. . 15.25.) Safety stock = units (d) What reorder pointis needed to provide an order-cycle service level of 99 percent? (Round up your answer to the nearest whole number, e.g. 125.) Reorder point = tapes (e) How much safety stock must the company hold to have a 99 percent order-cycle service level?(Round answer to 2 decimal places, e.g. 15.25.) Satefy stock = units Step by Step Solution
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