Petromax Enterprises uses a continuous review inventory controlsystem for one of its SKUs. The following information is availableon the item. The firm operates 52 weeks in a year. Refer to thestandard normal tableLOADING... for z-values.
Demand = 78,000 units/year
Ordering cost = $30.00/order
Holding cost = $3.50/unit/year
Average lead time = 9 weeks
Standard deviation of weekly demand = 200 units
Part 2 a. The economic order quantity for this item is units enter your response here units. (Enter your responserounded to the nearest whole number.)
Part 3 b. If Petromax wants to provide a 99% service level,the safety stock is enter your response here units (enter yourresponse rounded to the nearest whole number) and the reorderpoint is enter your response here units (enter your responserounded to the nearest whole number).
Petromax Enterprises Uses A Continuous Review Inventory Control System For One Of Its Skus The Following Information Is 1 (621.16 KiB) Viewed 67 times
Z 0.01 0.0 0.1 0.2 0.3 0.4 0.5 0.7157 0.7190 | 0.7224 0.6 0.00 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.5000 0.5040 0.5080 0.5120 0.5160 0.5199 0.5239 0.5279 0.5319 0.5359 0.5398 0.5438 | 0.5478 | 0.5517 | 0.5557 0.5596 0.5636 0.5675 0.5714 0.5754 0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141 0.6179 0.6217 0.6255 | 0.6293 | 0.6331 0.6368 | 0.6406 0.6443 0.6480 | 0.6517 0.6554 0.6591 0.6628 | 0.6664 0.6700 0.6736 | 0.6772 0.6808 | 0.6844 0.6879 0.6915 0.6950 0.6985 0.7019 | 0.7054 0.7088 | 0.7123 0.7258 0.7291 0.7324 0.7357 0.7389 0.7422 | 0.7454 | 0.7486 | 0.75180.7549 0.7580 0.7612 | 0.7642 | 0.7673 | 0.7704 | 0.7734 0.7764 | 0.7794 | 0.7823 0.7852 0.7881 0.7910 0.7939 0.7967 0.7996 0.8023 0.8051 0.8079 0.8106 0.8133 0.8159 0.8186 0.8212 | 0.8238 | 0.8264 | 0.8289 0.8413 0.8438 0.8461 0.8485 0.8508 | 0.8531 0.8643 0.8665 0.8686 0.8708 | 0.8729 0.8849 0.8869 0.8888 | 0.8907 | 0.8925 0.9032 0.9082 | 0.9099 0.7 0.8 0.9 0.8315 | 0.8340 | 0.8365 0.8389 1.0 1.1 0.8554 0.8577 0.8599 0.8621 0.8749 | 0.8770 | 0.8790 | 0.8810 0.8830 0.8944 | 0.8962 0.8980 | 0.8997 | 0.9015 1.2 1.3 0.9049 | 0.9066 0.9115 0.9131 0.9147 | 0.9162 0.9177 1.4 0.9192 0.9207 0.9222 1.5 0.9332 0.9236 0.9251 0.9265 | 0.9279 0.9292 0.9306 0.9319 0.9345 | 0.9357 0.9370 | 0.9382 | 0.9394 | 0.9406 | 0.9418 | 0.9430 0.9441 1.6 0.9452 0.9463 | 0.9474 0.9485 0.9495 0.9505 0.9515 0.9525 0.9535 0.9545 1.7 0.9554 0.9564 0.9573 | 0.9582 | 0.9591 | 0.9599 0.9608 | 0.9616 0.9625 0.9633 1.8 0.9641 0.9649 0.9656 0.9664 0.9671 0.9678 0.9713 0.9719 0.9726 0.9732 0.9738 0.9744 0.9750 0.9756 0.9762 0.9767 0.9773 0.9778 0.9783 0.9788 0.9793 0.9798 | 0.9803 | 0.9808 | 0.9812 0.9817 0.9821 0.9826 0.9830 | 0.9834 0.9838 | 0.9842 | 0.9846 0.9850 | 0.9854 0.9857 0.9861 0.9865 | 0.9868 | 0.9871 | 0.9875 | 0.9878 | 0.9881 | 0.9884 | 0.9887 | 0.9890 0.9686 0.9693 0.9700 0.9706 1.9 2.0 2.1 2.2
Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information available on the item. The firm operates 2 weeks in a year. Refer to the standard normal table for z-values. > Demand = 78,000 units/year > Ordering cost = $30.00/order > Holding cost = $3.50/unit/year > Average lead time = 9 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 99% 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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