Exercise 12-16: Epson
Inputs
Weekly Demand for Epson Printers in Europe
Country
Mean Demand Standard Deviation
France 3,000 2,000
Germany 4,000 2,200
Spain 2,000 1,400
Italy 2,500 1,600
Portugal 1,000 800
UK 4,000 2,400
Lead time, L 8
Expedited lead time, L* 4
Target cycle service level 0.95
Printer Costs $200.00
Holding Costs 0.25
Additional Production Cost $5.00
Demand and Standard Deviation for Epson Printers in Europe during Replenishment Lead Time
Required Safety Inventory for Epson Printers in Europe
Savings ($) $1,385,185 $979,474 $405,711
SD of demand
during lead time σL
Mean demand
(8 weeks)
(4 weeks)