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 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
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