HELP! PLEASE Petromax Enterprises uses a continuous review inventory control system for one of its SKUs....
HELP! PLEASE
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 52 weeks in a year.
Demand = 91,000units/year
Ordering cost = $32.50
Holding cost = $3.50/unit/year
Average lead time = 4 Weeks
Standard deviation of weekly demand = 250 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 the reorder point is ____units (enter your response rounded to the nearest whole number).
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HELP! PLEASE
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