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Hewlett-Packard Produces Deskjet Printers for Worldwide Demand at Its Vancouver

Question 4

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Hewlett-Packard produces deskjet printers for worldwide demand at its Vancouver, WA facility. It is observed that the monthly demand for type AB printers at the European DC averages 15,830 with a standard deviation of 5,624.
-The fixed cost of transportation and ordering is $100,000. Each printer costs $100 and HP has a holding cost of 20%. The optimal order quantity for the European DC is


A) About 43,585
B) About 12,582
C) About 125,817
D) About 435,844
E) None of the above

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