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
OR
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