Question: 1 . Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The
Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firm operates weeks a year. Demand unitsyear Ordering cost $order Holding cost $unityear Average lead time weeks Standard deviation of weekly demand units a What is the economic order quantity for this item? b If Petromax wants to provide a percent cycleservice level, what should be the safety stock and the reorder point?
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