The VP for Fite's Footballs has asked you to perform an audit of inventory levels for a different region. The inventory manager was recently terminated and you need to determine the appropriate inventory planning factors. Management has set the service level at $85\%.$ Given the data below, what $"$K$"$ value should be used in the inventory management planning activities?

Price

Annual Demand

Cost per Order

Cost to hold the item per year

Economic order quantity

$$100$

$156,000$ units

$$200$

$25\%$

$1580$

$3$ weeks