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USTA COMPLETE Vemory Management system, a Pant supply store franchise continuously monitors the inventory of all the paint located at each of their 15 stores

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USTA COMPLETE Vemory Management system, a Pant supply store franchise continuously monitors the inventory of all the paint located at each of their 15 stores and their distribution warehouse. The Paint Supply Store franchise sells an average of 42 galions of| Orange Paint every week (for 52 weeks per year. Standard Deviation of the Demand = 5 gallons). They purchase Orange Paint from their supplier at a price of $2,50 per gallon. it takes 1.50 weeks to receive an order from the supplier Administrative costs for Ordering paint have been estimated to be $20 per order. Holding Costs = 25% of the purchase price per Rallon per year. How much Safety Stock should the company hold to have a service Level of 85.096 Reorder Point, ROP = L + SS Service Level 99.99% d = Average Demand Rate per Time Period 99.90% D = Demand Rate per Year 99.00% L = Average Lead time (time periods) 95.00% 90.0096 SS = Safety Stock = zoal 85.00% 80.00% Odz = Los (Assuming Lead Time is constantas in Periodic review) 0 = Standard Deviation of the demand z Value 3.719 3.090 2.326 1.645 1.282 1.036 0.842 Activate Windows Go to PC settings tot Wing

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