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 the reorder point is ____ units.