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 values.
Demand unitsyear
Ordering cost $order
Holding cost $ unityear
Average lead time weeks
Standard deviation of weekly demand 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 service level, the safety stock is units enter your response rounded to the nearest whole number and the reorder point is
units enter your response rounded to the nearest whole number
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
