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A small copy center uses 4 550-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by normal distribution with a mean of 4 boxes per week and a standard deviation of 40 box per week. 3 weeks are required to fill an order for letterhead stationery. Ordering cost is $4, and annual holding cost is 33 cents per box Use Table a. Determine the economic order quantity, assuming a 52-week year. (Round your answer to the nearest whole number.) EOQ boxes . 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.) Risk

A small copy center uses 4 550-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by normal distribution with a mean of 4 boxes per week and a standard deviation of 40 box per week. 3 weeks are required to fill an order for letterhead stationery. Ordering cost is $4, and annual holding cost is 33 cents per box Use Table a. Determine the economic order quantity, assuming a 52-week year. (Round your answer to the nearest whole number.) EOQ boxes . 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.) Risk

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A small copy center uses 4 550-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a normal distribution with a mean of 4 boxes per week and a standard deviation of 40 box per week. 3 weeks are required to fill an order for letterhead stationery. Ordering cost is $4, and annual holding cost is 33 cents per box Use Table 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.) Risk
Transcribed Image Text:A small copy center uses 4 550-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a normal distribution with a mean of 4 boxes per week and a standard deviation of 40 box per week. 3 weeks are required to fill an order for letterhead stationery. Ordering cost is $4, and annual holding cost is 33 cents per box Use Table 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.) Risk
c. If a fixed interval of 5 weeks is used for ordering instead of an ROP, how many boxes should be ordered if there are currently 23 boxes on hand, and an acceptable stockout risk for the order cycle is 0228? (Round "2" value to 2 decimal places and final answer to the nearest whole number.)
Transcribed Image Text:c. If a fixed interval of 5 weeks is used for ordering instead of an ROP, how many boxes should be ordered if there are currently 23 boxes on hand, and an acceptable stockout risk for the order cycle is 0228? (Round "2" value to 2 decimal places and final answer to the nearest whole number.)
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