Q. After graduation, you decide to go into a partnership in an office supply store which has existed for a number of years. Walking through the store also stockrooms, you find out a great discrepancy in service levels. Some spaces also bins for items are completely empty; others have supplies which are covered with dust also have obviously been there a long time. You decide to take on the project of establishing consistent levels of inventory to meet customer demands. Most of your supplies are purchased from a few distributors which call on your store once every 2 weeks.

You choose, as your first item for study, computer printer paper. You examine the sales records also purchase orders also find out which demand for the last 12 months was 5,000 boxes. Using your calculator you sample some days' demands also estimate which the standard deviation of daily demand is 10 boxes. You also search out these subsequent figures:

Cost per box of paper: $11.
Desired service probability: 98 %.
Store is open every day.
Salesperson visits every 2 weeks.
Delivery time subsequent visit is 3 days.

Using your procedure, describe how many boxes of paper would be ordered if, on the day the sale person calls, 60 boxes are on hand?