a. Create the parts listed in Table 2. The format must include:

EOQ, Safety Stock levels, Reorder points, and- separately- the annual Inventory costs (Ordering and Holding inventory, including Safety Stock) using the continuous review system.

Oil Filters:

Retail Sales Price (in $)* - 15.00

Volume used in shop per week (in units)** - 86

Volume sold thru retail per week (in units)** - 23

*Purchase cost from supplier is 50% of sales price

**Standard deviation of periodic demand is 10% of total weekly demand

HINT: Inventory calculations are indifferent as to the ultimate use of a part (i.e. retail versus in shop).