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.

Demand=83,200 units/year

Ordering cost= $38.50/order

Holding cost=3.50/unit/year

Average lead time= 9 week

Standard deviation of weekly demand = 120 units

a. the economic order quantity for this item is ___ units

b. if petromax wants to provide a 92% service level, the safety stock is __ units

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