Course Solutions Uncategorized (Answered) : Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is availab

(Answered) : Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is availab

Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firm operates 48 weeks in a year. Refer to the

standard normal table.for​ z-values.

Demand = 78,000 ​units/year

Ordering cost​ = ​$38.00​/order

Holding cost​ = ​$4.50​/unit/year

Average lead time​ = 99 weeks

Standard deviation of weekly demand​ = 200 units

a. The economic order quantity for this item is ____ units.

​(Enter your response rounded to the nearest whole​ number.)

b. If Petromax wants to provide a 90​% service​ level, the safety stock is ____ units ​(enter your response rounded to the nearest whole​ number) and

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