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 z-values.

Demand

83,200

units/year

Ordering

cost =

$38.50/order

Holding

cost =

$3.50/unit/year

Average

lead time =

weeks

Standard

deviation of weekly demand =

250

units

Part 2

a. The economic order quantity for this item is

enter your response here

units.

(Enter your response rounded to the nearest whole number.)

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