=+11. Through its online accessory store, Gateway sells its own products, as well as products made by other companies.

One of these products is the WB150 WolfByte laptop computer:

Estimated annual demand: 15,376 laptops

(50 weeks per year)

Cost: $640 per laptop Lead time: 2 weeks Standard deviation of weekly demand:

16 laptops Standard deviation of lead time:

0.3 weeks Holding cost per unit per year:

40% of item cost Ordering cost: $25 per order Desired service level: 95% (z = 1.65)