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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
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; as. 125.) 1122 (b) What reorder point will provide an order cycle service level of 97 percent? {Round up youranswer to the nearest whole number, eg. 125.) 16 tapes (c) How much safety stock must the company hold to have a 97 percent order-cycle service level? (Round up your answer to the nearest whole number, as. 125.) 6 units (d) What reorder point is needed to provide an order-cycle service level of 99 percent? (Round up your answer to the nearest whole number. eg. 125.) 17 tapes (e) How much safety stock must the company hold to have a 99 percent order-cycle service level? (Round up your answer to the nearest whole number, as. 125.} 7 units
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