Uses continuous review inventory control system

Assignment Help Operation Management

Reference no: EM132077016

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.

Reference no: EM132077016

Questions Cloud

Available properties maximize quality holdings profit : a) Would renting out all of the available properties maximize Quality Holdings' profit?

Identify and discuss several global creative organizations : Identify and discuss several global creative organizations using the criteria and descriptions in Ch. 10 and 11 of Mastering Leadership.

Identify examples of the learning and growth efforts : Use the company that you selected for Problem 1. Identify examples of its learning and growth efforts and explain how those might affect its business process.

Discuss how you approach cross-functional membership : Discuss how you approach cross-functional membership within your team and address potential concerns of your team who come from different departments.

Uses continuous review inventory control system : Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item.

Discuss the impact of organizational culture and structure : Discuss the impact of organizational culture and structure on that opportunity for strategic change.

Describe the behavioral challenges in achieving efficiency : Describe the behavioral challenges in achieving efficiency. Discuss the three forms of market efficiency.

Business marketing plan on on-going or imaginary business : Each student shall develop and submit a small business marketing plan on an on-going or imaginary business.

Diverges without being infinity or negative infinity : If it diverges to negative infinity, state your answer as -INF. If it diverges without being infinity or negative infinity, state your answer as DIV.

User Account

All Pages