A small copy center uses approximately 25 boxes of copy paper a week. Experience suggests that usage can be well approximated by a normal distribution with a standard deviation of 9.0 box per week. 2.0 weeks are required to fill an order for letterhead stationery. Ordering cost is $3.00, and annual holding cost is $0.50 per box. The manager's desired service level is 0.80. Assume a year is 52 weeks.

How much is the "annual" demand rate?

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How much is the optimal order quantity? (keep two decimal places)

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How many times a year the copy center place a new order of papers? (keep two decimal places)

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How many weeks does each order of paper last?

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Compute the total annual cost of ordering and carrying boxes of papers.

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What is the Z value for the desired service level?

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How much safety stock is needed to provide the desired service level?

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What is the ROP for the desired service level?

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