Acompany begins a review of ordering policies for its continuous review system by checking the current policies for a sample of skus. following are the characteristics of one item. refer to the standard normal for z-values. followsdemand (d) = 120 units/week (assume 49 weeks per year) followsordering and setup cost (s) = $40/order followsholding cost (h) = $13.50/unit/year followslead time (l) = 1 weeks followsstandard deviation of weekly demand = 23 units followscycle-service level = 96 percent a. what is the eoq for this item? 187 units. (enter your response rounded to the nearest whole number.) b. what is the desired safety stock? nothing units. (enter your response rounded to the nearest whole number.)

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?