QUESTION 14 Using a computerized Inventory Management System, a Paint Supply Store franchise continuously monitors the inventory of all the paint located at each of their 15 stores and their distribution warehouse. The Paint Supply Store franchise sells an average of 32 gallons of Red Paint every week (for 52 weeks per year). They purchase Red Paint from their supplier at a price of $2.00 per gallon. The company does not hold Safety Stock] It takes 1.25 weeks to receive an order from the supplier. Administrative costs for Ordering paint have been estimated to be $15 per order. Holding Costs -20% of the purchase price per gallon per year. What is the most Economic Order Quantity? 99.99% 3.719 3.090 2326 1645 1 282 Reorder Point, ROP = dL + SS Service Level Value d Average Demand Rate per Time Period 99.90% D Demand Rate per Year 99.00% 95.00% Average Lead time (time periods) 90.00% SS - Safety Stock = Z OL 85.00% 1036 80.00% 0842 0-10 (Assuming Lead Time is constant as in Periodic review) Standard Deviation of the demand 2 Number of Standard deviations corresponding to a service level Q-Order Quantity Average Inventory Level 0/2 +55 H Holding Cost Per Year Per Unit 5. Ordering/Setup Cost Per Order Total Annual Inventory Cost = (%) H+ s + H(SS) Click Save and Submit to sue and w ithik S ANA to sell answers 2013 oor