Using a computerized Inventory Management System, a Paint Supply Score franchise continuously monitors the inventory of all the paint located at each of their 15 stores and their distribution warehouse. The Paint Supply Score franchise seils an average of 64 gallons of Green Paint every week for 52 weeks per year, Standard Deviation of the Demand - 7 gallons). They purchase Green Paint from their supplier at a price of $3.50 per gallon Administrative costs for Ordering paling have been estimated to be 50 per order Holding Costs -35of the purchase price per gallon per year. How much Safety Sock should the company hold to have a Service Level of 95.0? Reorder Point, ROP = LSS Service Level d Average Demand Rate per Time Period D-Demand Rate per Year 1645 L-Average Lead time (time periods) 55 Safety Stock 85.00% 1036 LLO 80.00% 0.842 (Assuming Lead Time is constant as in Periodic review) Standard Deviation of the demand I Number of Standard deviations corresponding to a service level H Order Quantity Average Inventory level 0/2 +55 Holding Cost Per Year Per Unit Ordering/Setup Cost Per Order S Total Annual Inventory Cost = ( + s + H(SS) Economic Order Quantity, EoQ208 Time Between Orders = TBO0 OA 17 gallons of paint 8.11 alions of paint OC 214 tons of paint 0.92 gallons of paint 6.737 gallons of paint