I need help. It is due today. The answer for question b, 465 units is false/not correctThe two images are the examples on how to solve the problem.1. 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. Refer to thestandard normal table for z-values.≻Demand = 78,000 units/year≻Ordering cost = $30.00/order≻Holding cost = $3.00/unit/year≻Average lead time = 1 week≻Standard deviation of weekly demand = 200 unitsThe answer for a is:a. The economic order quantity for this item is 1249 units.(Enter your response rounded to the nearest whole number.) FIND b, pleaseb. If Petromax wants to provide a 98% service level, the safety stock is "what?" units (enter your response rounded to the nearest whole number) Petromax Enterprises uses a continuous review inventory control system for one of its SKUS. The followinginformation is available on the item. The firm operates 48 weeks in a year. Refer to the standard normal table forZ-values.> Demand = 52,000 units/year> Ordering cost = $38.00/order> Holding cost = $2.50/unit/year> Average lead time = 1 week> Standard deviation of weekly demand = 120 unitsa. What is the economic order quantity?The economic order quantity (EOQ) is:2DSEOQ =H 'where D is the demand in units per year, S is the ordering cost, and H is the inventory holding cost.|2x 52,000 x 38.00The economic order quantity for this item is1,257 units.2.50 b. If Petromax wants to provide a 96% service level, what should be the safety stock and the reorder point?First, the formula for calculating safety stock in a continuous review system is:ZGGLT, where ogLT = V[.The standard deviation of weekly demand, og, is given as 120 units. The lead time, L, is given as 1 week.Using the standard normal table, for the desired service level of 96%, the z value is 1.75.Therefore, the safety stock is 1.75x 120/ī = 210 units.Next, calculate demand during lead time, dL, by first calculating weekly demand:Demand52,000Weekly demand, d, is calculated as:Work Weeks per Year= 1,083 units.48dL is 1,083x1 = 1,083 units.The reorder point is 1,083 + 210 = 1,293 units.

I need help. It is due today. The answer for question b, 465 units is false/not correct The two images are the examples on how to solve the problem. 1. 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. Refer to the standard normal table for z-values. ≻Demand = 78,000 units/year ≻Ordering cost = $30.00/order ≻Holding cost = $3.00/unit/year ≻Average lead time = 1 week ≻Standard deviation of weekly demand = 200 units The answer for a is: a. The economic order quantity for this item is 1249 units. (Enter your response rounded to the nearest whole number.) FIND b, please b. If Petromax wants to provide a 98% service level, the safety stock is "what?" units (enter your response rounded to the nearest whole number)

I need help. It is due today. The answer for question b, 465 units is false/not correct The two images are the examples on how to solve the problem. 1. 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. Refer to the standard normal table for z-values. ≻Demand = 78,000 units/year ≻Ordering cost = $30.00/order ≻Holding cost = $3.00/unit/year ≻Average lead time = 1 week ≻Standard deviation of weekly demand = 200 units The answer for a is: a. The economic order quantity for this item is 1249 units. (Enter your response rounded to the nearest whole number.) FIND b, please b. If Petromax wants to provide a 98% service level, the safety stock is "what?" units (enter your response rounded to the nearest whole number)

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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Recognize the important relationship between inventory management and delivering the perfectcustomer order