A local service station is open 7 days per week, 365 days per year. Sales of 10W40 grade premium oil average 19 cans per day. Inventory holding costs are $1 per can per year. Ordering costs are $8 per order. Lead time is 2 weeks. Backorders are not practical -- the motorist drives away.

A) Based on these data, choose the appropriate inventory model and calculate the economic order quantity. Please round to a whole number.

The boss is concerned about this model because demand really varies. The standard deviation of demand was determined from a data sample to be 6.54 cans per day. The manager wants a 99.5 percent service probability. Determine a new inventory plan based on this information and the data above.

B) What is the standard deviation of the demand during the lead time? (Keep two decimals.)

C) What is the z-score of the given service level?

D) What is the safety stock?

E) What is the reorder point?