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 52 weeks in a year. Refer to the standard normal tableLOADING... for z-values.

Demand = 78,000 units/year

Ordering cost = $30.00/order

Holding cost = $3.50/unit/year

Average lead time = 9 weeks

Standard deviation of weekly demand = 200 units

Part 2 a. The economic order quantity for this item is units enter your response here units. (Enter your response rounded to the nearest whole number.)

Part 3 b. If Petromax wants to provide a 99% service level, the safety stock is enter your response here units (enter your response rounded to the nearest whole number) and the reorder point is enter your response here units (enter your response rounded to the nearest whole number).

Petromax Enterprises uses a continuous reviewPetromax Enterprises uses a continuous review

Z 0.01 0.0 0.1 0.2 0.3 0.4 0.5 0.7157 0.7190 | 0.7224 0.6 0.00 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.5000 0.5040 0.5080 0.5120 0.5160 0.5199 0.5239 0.5279 0.5319 0.5359 0.5398 0.5438 | 0.5478 | 0.5517 | 0.5557 0.5596 0.5636 0.5675 0.5714 0.5754 0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141 0.6179 0.6217 0.6255 | 0.6293 | 0.6331 0.6368 | 0.6406 0.6443 0.6480 | 0.6517 0.6554 0.6591 0.6628 | 0.6664 0.6700 0.6736 | 0.6772 0.6808 | 0.6844 0.6879 0.6915 0.6950 0.6985 0.7019 | 0.7054 0.7088 | 0.7123 0.7258 0.7291 0.7324 0.7357 0.7389 0.7422 | 0.7454 | 0.7486 | 0.75180.7549 0.7580 0.7612 | 0.7642 | 0.7673 | 0.7704 | 0.7734 0.7764 | 0.7794 | 0.7823 0.7852 0.7881 0.7910 0.7939 0.7967 0.7996 0.8023 0.8051 0.8079 0.8106 0.8133 0.8159 0.8186 0.8212 | 0.8238 | 0.8264 | 0.8289 0.8413 0.8438 0.8461 0.8485 0.8508 | 0.8531 0.8643 0.8665 0.8686 0.8708 | 0.8729 0.8849 0.8869 0.8888 | 0.8907 | 0.8925 0.9032 0.9082 | 0.9099 0.7 0.8 0.9 0.8315 | 0.8340 | 0.8365 0.8389 1.0 1.1 0.8554 0.8577 0.8599 0.8621 0.8749 | 0.8770 | 0.8790 | 0.8810 0.8830 0.8944 | 0.8962 0.8980 | 0.8997 | 0.9015 1.2 1.3 0.9049 | 0.9066 0.9115 0.9131 0.9147 | 0.9162 0.9177 1.4 0.9192 0.9207 0.9222 1.5 0.9332 0.9236 0.9251 0.9265 | 0.9279 0.9292 0.9306 0.9319 0.9345 | 0.9357 0.9370 | 0.9382 | 0.9394 | 0.9406 | 0.9418 | 0.9430 0.9441 1.6 0.9452 0.9463 | 0.9474 0.9485 0.9495 0.9505 0.9515 0.9525 0.9535 0.9545 1.7 0.9554 0.9564 0.9573 | 0.9582 | 0.9591 | 0.9599 0.9608 | 0.9616 0.9625 0.9633 1.8 0.9641 0.9649 0.9656 0.9664 0.9671 0.9678 0.9713 0.9719 0.9726 0.9732 0.9738 0.9744 0.9750 0.9756 0.9762 0.9767 0.9773 0.9778 0.9783 0.9788 0.9793 0.9798 | 0.9803 | 0.9808 | 0.9812 0.9817 0.9821 0.9826 0.9830 | 0.9834 0.9838 | 0.9842 | 0.9846 0.9850 | 0.9854 0.9857 0.9861 0.9865 | 0.9868 | 0.9871 | 0.9875 | 0.9878 | 0.9881 | 0.9884 | 0.9887 | 0.9890 0.9686 0.9693 0.9700 0.9706 1.9 2.0 2.1 2.2 Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information available on the item. The firm operates 2 weeks in a year. Refer to the standard normal table for z-values. > Demand = 78,000 units/year > Ordering cost = $30.00/order > Holding cost = $3.50/unit/year > Average lead time = 9 weeks > 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 number.) b. If Petromax wants to provide a 99% 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)

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