XYZ LTD is a company based in Cape Town. XYZ imports printersfrom China and sells it to local corporate clients. Delivery normally takes 3 weeks. XYZ sells 5432 printerson average per year. Annual carrying costs is 23%. XYZ negotiated the purchase price per printerto be $341. Every time that XYZ places an order the fixed ordering cost per order is $1110.

1. What is the economic order quantity of printersfor XYZ?

2. Assuming certainty in delivery and usage, at what inventory level should the firm reorder?

3. Assume a 263-unit safety stock is carried. What will the additionalinventory cost be?