Using a computerized tiventory Marugement System, a Paint Supply Store franchise conbinously monitors the inventory ot al the paint located at each of their is storei and their dintibution warehouse. The Paint Supply Store tranchise sels an arenase of 74 galions of haple Pant every week for 52 weeks per yeari. Thry purchase Purple Pant trom thes tuppler at a price of Stoo per gallon the company does not hold Safety Stock Adminetrative cess for Ordering paint huve been estimaned to be 535 per arder. Holding coss a dow of the purchase price per galon per year. What is the most tconomic Order Quanty? Reorder Point, ROP=dL+SS d= Avecage Demand Rate per Time Period D a Demand Rate per Year L= Average Lead time (time periods) 55 = Salety 5 tock =xai. at=L2 (Assuming Lad Thme is constant as in P oriodic novirw) o standard Devlatlan of the demand I= Number of standard deviations corresponding to a service level Q = Oider Quantity Average imventery tavel =Q/2+SS If = Holding Cont Per Year Per Unit S = Orderinc/Setup Cont Per Order Total Annual Inventory Cost =(2Q)H+(QQ)S+H(SS) Economic Order Ouantitv, EOO=2D5 Time Botween (Assuming Lead Time is constant as in Periodic revie d= Standard Deviation of the demand z= Number of Standard deviations corresponding to Q=Order Quantity Average Inventory Le H= Holding Cost Per Year Per Unit S= Ordering / Setup Cost Per Order Total Annual Inventory Cost =(2Q)H+(QD) Economic Order Quantity, EOQ =H2DS Tin Orders =TBO=DEOQ A. 139 gallons of paint B. 324 gallons of paint C. 410 gallons of paint D. 57 gallons of paint E. 821 gallons of paint