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 reviewPetromax Enterprises uses a continuous review

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 table for z-values. > Demand = 78,000 units/year > Ordering cost = $60.00/order > Holding cost = $4.00/unit/year > Average lead time = 1 week > Standard deviation of weekly demand = 175 units a. The economic order quantity for this item is units. (Enter your response rounded to the nearest whole number.) units (enter your response rounded to the nearest whole number) and the reorder point is b. If Petromax wants to provide a 96% service level, the safety stock is units (enter your response rounded to the nearest whole number). Service Leve 90% 92% 95% 96% 98% 99% z-value 1.28 1.41 1.65 1.75 2.05 2.33

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