Using a computerized inventory Manugement System, a Pent Supply store franchise concnupuly montors the inventory of ali the paink iocated at each of their t5 stores and their cotribution warehcune. The Paint Supply Store franchse sels an average of 60 gallons of Green Pant every week dor 52 weeks per.yean. Their curtent policy is that when they place an ooder for Giteen Paint from their wuppler, they order 85 gallons at a price of 43.50 per gallon. the company does not hold salety stock. in bker 2.25 weeks to recelve an order trom the rupplier. Administrative costs for Ordering paint have been estimated to be 130 per ordor. Holding Conts-35\% of the purchase price per gallon per yed. Whut is the Toual Annual inventory Cost for the companys curtent poticy? Reorder Point, ROP=dL+SS d= Average Demand Rate per Time Perlod D= Demand Aate per Year L = Average Lead time (time periods) 55= safety s stock =zat AL=L42 (Assuming Lead Time is constant as in Feriodic review) d= standard Devlation of the demand z= Number of Standard deviations corresponding to a service level Q= Order Quantity Average inventory Level =Q/2+55 H= Holding Cost Per Year Per Unit S= Orderine/Setup Cont Per Order Total Annual Inventory Cost =(2Q)H+(QD)S+H(SS) Economic Order Quantity, EOQ=H2D5 Time Between Orders =TBO=EQ A. 14541.95 B spech C.524123 (Assuming Lead Time is constant as in Periodic review) d= Standard Deviation of the demand z= Number of Standard deviations corresponding to a service level Q= Order Quantity Average Inventory Level =Q/2+SS H= Holding Cost Per Year Per Unit S= Ordering/Setup Cost Per Order Total Annual Inventory Cost =(2Q)H+(QD)S+H(SS) Economic Order Quantity, EOQ =H2DS Time Between Orders =TBO=DEOQ Using a computerized inventory Manugement System, a Pent Supply store franchise concnupuly montors the inventory of ali the paink iocated at each of their t5 stores and their cotribution warehcune. The Paint Supply Store franchse sels an average of 60 gallons of Green Pant every week dor 52 weeks per.yean. Their curtent policy is that when they place an ooder for Giteen Paint from their wuppler, they order 85 gallons at a price of 43.50 per gallon. the company does not hold salety stock. in bker 2.25 weeks to recelve an order trom the rupplier. Administrative costs for Ordering paint have been estimated to be 130 per ordor. Holding Conts-35\% of the purchase price per gallon per yed. Whut is the Toual Annual inventory Cost for the companys curtent poticy? Reorder Point, ROP=dL+SS d= Average Demand Rate per Time Perlod D= Demand Aate per Year L = Average Lead time (time periods) 55= safety s stock =zat AL=L42 (Assuming Lead Time is constant as in Feriodic review) d= standard Devlation of the demand z= Number of Standard deviations corresponding to a service level Q= Order Quantity Average inventory Level =Q/2+55 H= Holding Cost Per Year Per Unit S= Orderine/Setup Cont Per Order Total Annual Inventory Cost =(2Q)H+(QD)S+H(SS) Economic Order Quantity, EOQ=H2D5 Time Between Orders =TBO=EQ A. 14541.95 B spech C.524123 (Assuming Lead Time is constant as in Periodic review) d= Standard Deviation of the demand z= Number of Standard deviations corresponding to a service level Q= Order Quantity Average Inventory Level =Q/2+SS H= Holding Cost Per Year Per Unit S= Ordering/Setup Cost Per Order Total Annual Inventory Cost =(2Q)H+(QD)S+H(SS) Economic Order Quantity, EOQ =H2DS Time Between Orders =TBO=DEOQ