Ising a computerized Inventory Management System, a Paint Supply Store franchise continuously monitors the inventory of all the paint ocated at each of their 15 stores and their distribution warehouse. The Paint Supply Store franchise sells an average of 64 gallons of ireen Paint every week (for 52 weeks per year, Standard Deviation of the Demand =7 gallons). They purchase Green Paint from their upplier at a price of $3.50 per gallon. takes 2.25 weeks to receive an order from the supplier. dministrative costs for Ordering paint have been estimated to be $30 per order. olding costs =35% of the purchase price per gallon per year. low much Safety Stock should the company hold to have a Service Level of 95.0% ? Reorder Point, ROP=dL+SS d= Average Demand Rate per Time Period D = Demand Rate per Year L= Average Lead time (time periods) SS= Safety Stock =zdL dL=Ld2 (Assuming Lead Time is constant as in Periodic review) d= Standard Deviation of the demand z= Number of Standard deviations corresponding to a service level Q= Order Quantity Average Inventory Level =Q/2+SS H= Holding Cost Per Year Per Unit S= Ordering / Setup Cost Per Order Total Annual Inventory Cost =(2Q)H+(QD)S+H(SS) Economic Order Quantity, EOQ =H2DS Time Between Orders =TBO=DEOQ A. 11 gallons of paint B. 17 gallons of paint C. 92 gallons of paint D. 737 gallons of paint E. 214 gallons of paint