Question: Using a computerized Inventory Management System, a Paint Supply Store franchise continuously monitors the inventory of all the paint located at each of their 1
Using a computerized Inventory Management System, a Paint Supply Store franchise continuously monitors the inventory of all the paint located at each of their stores and their distribution warehouse. The Paint Supply Store franchise sells an average of gallons of Red Paint every week for weeks per year, Standard Deviation of the Demand gallons They purchase Red Paint from their supplier at a price of $ per gallon.
It takes weeks to receive an order from the supplier.
Administrative costs for Ordering paint have been estimated to be $ per order.
Holding Costs of the purchase price per gallon per year. How much Safety Stock should the company hold to have a Service Level of
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