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Part $1$

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 $50$ weeks in a year. Refer to the standard normal tableLOADING... for$$ z$-$values.

followsDemand $=50$ comma $000$units$/$year

followsOrdering cost$=$$$35/$order

followsHolding cost$=$$$2/$unit$/$year

followsAverage lead time$=3$ weeks

followsStandard deviation of weekly demand$=125$ units