Demand $=8$ gallons$).$ They purchase Purple Paint from their supplier at a price of $$4\mathrm{.}00$ per gallon.It takes $2\mathrm{.}50$ weeks to receive an order from the supplier.Administrative costs for Ordering paint have been estimated to be $$35$ per order.Holding Costs $=40\%$ of the purchase price per gallon per year.How much Safety Stock should the company hold to have a Service Level of $99\mathrm{.}0\%?$Reorder Point, ROP $=$ dL $+$ SSd $=$ Average Demand Rate per Time PeriodD $=$ Demand Rate per YearL $=$ Average Lead time $($time periods$)$SS $=$ Safety Stock $=$ Z O diService Level $99\mathrm{.}99\%99\mathrm{.}90\%99\mathrm{.}00\%95\mathrm{.}00\%90\mathrm{.}00\%85\mathrm{.}00\%80\mathrm{.}00\%$z Value$3\mathrm{.}7193\mathrm{.}0902\mathrm{.}3261\mathrm{.}6451\mathrm{.}2821\mathrm{.}0360\mathrm{.}8420$ aL $=$Loa$($Assuming Lead Time is constant as in Periodic review$)\backslash$deg a $=$ Standard Deviation of the demandz $=$ Number of Standard deviations corresponding to a service levelAverage Inventory Level $=$ Q$/2+$ SSQ $=$ Order QuantityH $=$ Holding Cost Per Year Per UnitS $=$ Ordering$/$Setup Cost Per OrderH$+$ C$-$ S $+$ H $($SS$)$Total Annual Inventory Cost $=2$Economic Order Quantity, EQ $=$Orders $=$ TBO $=$ E$002$DSHTime Between $395$ gallons of paint $1377$ gallons of paint $160$ gallons of paint $13$ gallons of paint $29$ gallons of paintDIl