Question: B Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firm
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 52 weeks in a year. Refer to the standard normal table for z-values. > Demand =52,000 units/year > Ordering cost =$38.50 /order > Holding cost =$3.50/ unit/year > Average lead time =4 weeks > Standard deviation of weekly demand =225 units a. The economic order quantity for this item is units. (Enter your response rounded to the nearest whole number.) b. If Petromax wants to provide a 96% service level, the safety stock is units (enter your response rounded to the nearest whole number)
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