Question: 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

 Petromax Enterprises uses a continuous review inventory control system for one

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 48 weeks in a year. Refer to the standard normal table for z-values. Demand =78,000 units/year Ordering cost =$38.00/ order Holding cost =$3.00/ unit/year Average lead time =1 week Standard deviation of weekly demand =200 units a. The economic order quantity for this item is units. (Enter your response rounded to the nearest whole numbe b. If Petromax wants to provide a 96% service level, the safety stock is units (enter your response rounded to t nearest whole number) and the reorder point is units (enter your response rounded to the nearest whole numb

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!