Just need f. Average weekly demand (52 weeks per year): 71printersStandard deviation of weekly demand: 19printersOrder lead time: 5weeksStandard deviation of order lead time: 0 (lead times are constant)Item cost: $170per printerCost to place an order: $5Yearly holding cost per printer: $39Desired service level during reordering period: 95%(z=1.65) One of the products sold by OfficeMax is a Hewlett-Packard LaserJet Z99 printer. Aspurchasing manager, you have the following information for the printer:i Click the icon to view the information for the printer.a. The EOQ is 31 (Enter your response rounded to the nearest whole number.)b. The annual ordering costs and holding costs (ignoring safety stock) for the EOQ is $ 1,199.(Enter your response rounded to the nearest dollar.)c. Suppose OfficeMax currently orders 170 printers at a time.OfficeMax would pay $ 2006 less in holding and ordering costs per year if it ordered just 17printers at a time. (Enter your response rounded to the nearest dollar.)d. The reorder point for the printer is 426 printers. (Enter your response rounded up to thenearest whole number.)The safety stock for the printer is 71 printers. (Enter your response rounded up to the nearestwhole number.)e. Use the following formula to consider the impact of safety stock (SS) on average inventorylevels and annual holding costs:(2 + SSHThe annual inventory holding cost, including the safety stock, is $6,084. (Enter your responserounded to the nearest dollar.)The annual safety stock holding cost is $ 2,769. (Enter your response rounded to thenearest dollar.)f. Suppose OfficeMax is able to cut the lead time to a constant 3 weeks.The new safety stock level iswhole number.)(Enter your response rounded up to the nearest

Note:only sub parts-(f) has been answered as mentioned in the question (f)Continuous review- fixed…

Answered: f. Suppose OfficeMax is able to cut the…

f. Suppose OfficeMax is able to cut the lead time to a constant 3 weeks. The new safety stock level is whole number.) (Enter your response rounded up to the nearest

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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Tacky Souvenirs sells lovely handmade tablecloths at its islandstore. These tablecloths cost Tacky $15 each. Customers wantto buy the tablecloths at a rate of 240 per week. The companyoperates 52 weeks per year. Tacky, the owner, estimates hisordering cost at $50. Annual holding costs are 20 percent of theunit cost. Lead time is 2 weeks. Using the information given,(a) Calculate the economic order quantity.(b) Calculate the total annual costs using the EOQ.(c) Determine the reorder point.
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asap!! A manager of an inventory system believes that inventory models are important decision making aids. Even though often using an EOQ policy, the manager never considered a backorder model because of the assumption that backorders were “bad” and should be avoided. However, with upper management’s continued pressure for cost reduction, you have been asked to analyze the economics of a backorder policy for some products that can possibly be backordered. For a specific product with D = 1200 units per year, Co = 160, = 4, and = 25, what is the difference in total annual cost between the EOQ model and the planned shortage or backorder model? If the manager adds constraints that no more than 25% of the units can be backordered and that no customer will have to wait more than 18 days for an order, should the backorder inventory policy be adopted? Assume 300 working days per year.
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Average weekly demand (52 weeks per year):		71 printers
Standard deviation of weekly demand:		19 printers
Order lead time:		5 weeks
Standard deviation of order lead time:		0 (lead times are constant)
Item cost:		$170 per printer
Cost to place an order:		$5
Yearly holding cost per printer:		$39
Desired service level during reordering period:		95% (z=1.65)