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 seils an average of 42 gallons of Orange Paint every week for 52 weeks per year. They purchase Orange Paint from their supplier at a price of $2.50 per gallon. [The company does not hold Safety Seack] It takes 1.50 weeks to receive an order from the supplier Administrative costs for Ordering paint have been estimated to be 520 per order. Holding Costs -25% of the purchase price per gallon per year. What is the most Economic Order Quanti? 90.00 Reorder Point, ROP = L + SS Service Level Value d = Average Demand Rate per Time Period 99.90 3.090 D Demand Rate per Year 99.00% L = Average Lead time (time periods) SS Safety Stock datto 80.00% 0.842 (Assuming Lead time is constant as in Periodic review) - Standard Deviation of the demand z = Number of Standard deviations corresponding to a service level Q-Order Quantity Average Inventory Level 0/2 + SS H Holding Cost Per Year Per Unit S=Ordering/Setup Cost Per Order Total Annual Inventory Cost = () + s +H(SS) Economic Order Quantity, EOQ = 208 Time Between Orders = TBO= OA 473 alions of paint O 52 gallons of paine O 991 gallons of paint OD.374 gallons of paint O 132 gallons of paint