Business, 27.06.2020 23:01 8848

A small copy center uses 6 600-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a normal distribution with a mean of 6 boxes per week and a standard deviation of .60 box per week. 2 weeks are required to fill an order for letterhead stationery. Ordering cost is $6, and annual holding cost is 35 cents per box. a. Determine the economic order quantity, assuming a 52-week year. (Round your answer to the nearest whole number.)
EOQ boxes
b. If the copy center reorders when the supply on hand is 13 boxes, compute the risk of a stockout. (Round "z" value to 2 decimal places and final answer to 4 decimal places.)
c. If a fixed interval of 7 weeks is used for ordering instead of an ROP, how many boxes should be ordered if there are currently 28 boxes on hand, and an acceptable stockout risk for the order cycle is .0228? (Round "z" value to 2 decimal places and final answer to the nearest whole number.)

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A small copy center uses 6 600-sheet boxes of copy paper a week. Experience suggests that usage can...