Question: Reorder Point, ROP = dL + SSd = Average Demand Rate per Time PeriodD = Demand Rate per YearL = Average Lead time ( time

Reorder Point, ROP = dL + SSd = Average Demand Rate per Time PeriodD = Demand Rate per YearL = Average Lead time (time periods)SS = Safety Stock = z O aLService Level99.99%99.90%99.00%95.00%90.00%85.00%80.00%z Value3.7193.0902.3261.6451.2821.0360.8420 aL =(Assuming Lead Time is constant as in Periodic review)\deg a = Standard Deviation of the demandz = Number of Standard deviations corresponding to a service levelAverage Inventory Level = Q/2+ SSQ = Order QuantityH = Holding Cost Per Year Per UnitS = Ordering/Setup Cost Per OrderTotal Annual Inventory Cost =2) H +2)5+ H(SS)Economic Order Quantity, EOQ =EOQOrders = TBO =D2DSHTime Between 57 gallons of paint 9620 gallons of paint 185 gallons of paint 4810 gallons of paint 37 gallons of paintEndF7DIIF4

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