3. 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 table for z-values.≻Demand = 91,000 units/year≻Ordering cost = $38.50/order≻Holding cost = $4.50/unit/year≻Average lead time = 9 weeks≻Standard deviation of weekly demand = 120 unitsa. 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). Petromax Enterprises uses a continuous review inventory control system for one of its SKUS. The following information is available on the item. The firm operatesad48 weeks in a year. Refer to the standard normal table for z-values. Demand = 91,000 units/year Ordering cost = $38.50/order Holding cost = $4.50/unit/yearAverage lead time = 9 weeks Standard deviation of weekly demand = 120 unitsatileLesa. The economic order quantity for this item is units. (Enter your response rounded to the nearest whole number.)nsab. If Petromax wants to provide a 90% service level, the safety stock isunits (enter your response rounded to the nearest whole number) and the reorder point isunits (enter your response rounded to the nearest whole number).te M g cost = $38.50/ordere leData TableicThe table below shows the total area under the normal curve for a point that is Z standard deviations to theright of the mean.wayo0.000.010.020.030.040.050.060.070.080.090.5000 0.5040 0.5080 0.5120 0.5160 0.5199 0.5239 0.5279 0.5319 0.53590.5398 0.5438 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.57540.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.61410.6179 0.6217 0.6255 0.6293 0.6331 0.6368 0.6406 0.6443 0.6480 0.65170.6554 0.6591 0.6628 0.6664 0.6700 0.6736 | 0.6772 0.6808 0.6844 0.68790.6915 0.6950 0.6985 0.7019 0.7054 0.7088 0.7123 0.7157 0.7190 0.72240.7258 0.7291 0.7324 0.7357 0.7389 0.7422 0.7454 0.7486 0.7518 0.75490.7580 0.7612 0.7642 0.7673 0.7704 0.7734 0.7764 0.7794 |0.7823 0.78520.7881 0.7910 0.7939 0.7967 0.7996 0.8023 0.80510.8079 0.8106 0.81330.8159 0.8186 0.8212 0.8238 0.8264 0.8289 0.8315 0.8340 0.8365 0.83890.8413 0.8438 0.8461 0.8485 0.8508 0.8531 0.8554 0.8577 0.8599 0.86210.8643 0.8665 0.8686 0.8708 0.8729 0.8749 0.8770 | 0.8790 | 0.88100.8849 0.8869 0.8888 0.8907 0.8925 0.8944 0.8962 0.8980 0.8997 0.90150.9032 0.9049 0.9066 0.9082 0.90990.9115 0.9131 0.91470.9162 0.91770.9192 0.9207 0.9222 0.9236 0.9251 0.9265 0.9279 0.9292 | 0.9306 0.93190.9332 0.9345 0.9357 0.9370 0.9382 0.9394 0.9406 0.9418| 0.9430 | 0.94410.9452 0.9463 0.9474 0.9485 0.9495 0.9505 0.9515 0.9525 0.9535 0.95450.9554 0.9564 0.9573 0.9582 0.95910.9599 0.9608 0.9616 |0.9625 0.96330.9641 0.9649 0.9656 0.9664 0.9671 0.9678 0.9686 0.9693 0.9700 0.97060.9713 0.9719 0.9726 0.9732 0.9738 | 0.9744 0.9750 0.9756 0.9762 0.97670.9773 0.9778 0.9783 0.9788 0.9793 0.9798 0.9803 0.9808 0.9812 0.98170.9821 0.9826 0.9830 0.9834 0.9838 0.9842 0.9846 0.9850 0.9854 0.98570.9861 0.9865 0.9868 0.9871 0.9875 0.9878 0.9881 0.9884 |0.9887 0.98902.30.00.10.20.30.40.50.60.70.80.91.01.10.88301.21.31.41.51.61.71.81.92.02.12.20.9893 0.9896 | 0.9898 0.9901 0.9904 0.9906 0.9909 0.9911 0.9913 0.99160.9918 0.9920 0.9922 0.9925 0.9927 |0.9929 0.9931 0.9932 0.9934 0.99360.9938 0.9940 | 0.9941 0.9943 0.9945 0.9946 0.9948 0.9949 0.9951 0.99520.9953 0.9955 0.9956 0.9957 0.9959 0.9960 0.99610.9962 0.9963 0.99640.9965 0.9966 0.9967 0.9968 0.9969 0.9970 0.9971 |0.9972 0.9973 0.99740.9974 0.9975 0.9976 0.9977 0.9977 | 0.9978 0.9979 0.9980 0.9980 0.99810.9981 0.9982 0.9983 0.9983 0.9984 0.9984 0.9985 0.9985 0.9986 0.99860.9987 0.9987 0.9987 | 0.9988 0.9988 0.9989 0.9989 0.9989 0.9990 0.99900.9990 0.9991 0.9991 0.9991 0.9992 0.9992 0.9992 0.9992 0.9993 0.99930.9993 0.9993 0.9994 0.9994 0.9994 0.9994 0.9994 0.9995 0.9995 0.99950.9995 0.9995 0.9995 0.9995 0.9996 0.9996 0.9996 0.9996 0.9996 0.99972.42.52.62.72.82.93.03.13.23.3PrintDone

Question

3. 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 table for z-values.≻Demand = 91,000 units/year≻Ordering cost = $38.50/order≻Holding cost = $4.50/unit/year≻Average lead time = 9 weeks≻Standard deviation of weekly demand = 120 unitsa. 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). Petromax Enterprises uses a continuous review inventory control system for one of its SKUS. The following information is available on the item. The firm operatesad48 weeks in a year. Refer to the standard normal table for z-values.> Demand = 91,000 units/year> Ordering cost = $38.50/order> Holding cost = $4.50/unit/year>Average lead time = 9 weeks> Standard deviation of weekly demand = 120 unitsatileLesa. The economic order quantity for this item is units. (Enter your response rounded to the nearest whole number.)nsab. If Petromax wants to provide a 90% service level, the safety stock isunits (enter your response rounded to the nearest whole number) and the reorder point isunits (enter your response rounded to the nearest whole number).te M g cost = $38.50/ordere leData TableicThe table below shows the total area under the normal curve for a point that is Z standard deviations to theright of the mean.wayo0.000.010.020.030.040.050.060.070.080.090.5000 0.5040 0.5080 0.5120 0.5160 0.5199 0.5239 0.5279 0.5319 0.53590.5398 0.5438 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.57540.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.61410.6179 0.6217 0.6255 0.6293 0.6331 0.6368 0.6406 0.6443 0.6480 0.65170.6554 0.6591 0.6628 0.6664 0.6700 0.6736 | 0.6772 0.6808 0.6844 0.68790.6915 0.6950 0.6985 0.7019 0.7054 0.7088 0.7123 0.7157 0.7190 0.72240.7258 0.7291 0.7324 0.7357 0.7389 0.7422 0.7454 0.7486 0.7518 0.75490.7580 0.7612 0.7642 0.7673 0.7704 0.7734 0.7764 0.7794 |0.7823 0.78520.7881 0.7910 0.7939 0.7967 0.7996 0.8023 0.80510.8079 0.8106 0.81330.8159 0.8186 0.8212 0.8238 0.8264 0.8289 0.8315 0.8340 0.8365 0.83890.8413 0.8438 0.8461 0.8485 0.8508 0.8531 0.8554 0.8577 0.8599 0.86210.8643 0.8665 0.8686 0.8708 0.8729 0.8749 0.8770 | 0.8790 | 0.88100.8849 0.8869 0.8888 0.8907 0.8925 0.8944 0.8962 0.8980 0.8997 0.90150.9032 0.9049 0.9066 0.9082 0.90990.9115 0.9131 0.91470.9162 0.91770.9192 0.9207 0.9222 0.9236 0.9251 0.9265 0.9279 0.9292 | 0.9306 0.93190.9332 0.9345 0.9357 0.9370 0.9382 0.9394 0.9406 0.9418| 0.9430 | 0.94410.9452 0.9463 0.9474 0.9485 0.9495 0.9505 0.9515 0.9525 0.9535 0.95450.9554 0.9564 0.9573 0.9582 0.95910.9599 0.9608 0.9616 |0.9625 0.96330.9641 0.9649 0.9656 0.9664 0.9671 0.9678 0.9686 0.9693 0.9700 0.97060.9713 0.9719 0.9726 0.9732 0.9738 | 0.9744 0.9750 0.9756 0.9762 0.97670.9773 0.9778 0.9783 0.9788 0.9793 0.9798 0.9803 0.9808 0.9812 0.98170.9821 0.9826 0.9830 0.9834 0.9838 0.9842 0.9846 0.9850 0.9854 0.98570.9861 0.9865 0.9868 0.9871 0.9875 0.9878 0.9881 0.9884 |0.9887 0.98902.30.00.10.20.30.40.50.60.70.80.91.01.10.88301.21.31.41.51.61.71.81.92.02.12.20.9893 0.9896 | 0.9898 0.9901 0.9904 0.9906 0.9909 0.9911 0.9913 0.99160.9918 0.9920 0.9922 0.9925 0.9927 |0.9929 0.9931 0.9932 0.9934 0.99360.9938 0.9940 | 0.9941 0.9943 0.9945 0.9946 0.9948 0.9949 0.9951 0.99520.9953 0.9955 0.9956 0.9957 0.9959 0.9960 0.99610.9962 0.9963 0.99640.9965 0.9966 0.9967 0.9968 0.9969 0.9970 0.9971 |0.9972 0.9973 0.99740.9974 0.9975 0.9976 0.9977 0.9977 | 0.9978 0.9979 0.9980 0.9980 0.99810.9981 0.9982 0.9983 0.9983 0.9984 0.9984 0.9985 0.9985 0.9986 0.99860.9987 0.9987 0.9987 | 0.9988 0.9988 0.9989 0.9989 0.9989 0.9990 0.99900.9990 0.9991 0.9991 0.9991 0.9992 0.9992 0.9992 0.9992 0.9993 0.99930.9993 0.9993 0.9994 0.9994 0.9994 0.9994 0.9994 0.9995 0.9995 0.99950.9995 0.9995 0.9995 0.9995 0.9996 0.9996 0.9996 0.9996 0.9996 0.99972.42.52.62.72.82.93.03.13.23.3PrintDone

Accepted Answer

The optimal quantity a corporation should purchase to minimize inventory expenditures, such as…