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 of its SKUs. The following information is available on the item. The firm operates weeks in a year. Refer to the standard normal table for zvalues.
Demand comma unitsyear
Ordering cost$order
Holding cost$unityear
Average lead time week
Standard deviation of weekly demand units
a The economic order quantity for this time is units?
b If Petromax wants to provide a service level, the safety stock is and the reorder point is
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
