What should be the safety stock and the reorder print

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Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following info is available. The firm operates 50 weeks in a year.

Demand= 50,000 units/ year

Ordering cost= $35/order

Holding cost= $2/ unit/year

Average lead time= 3 weeks

Standard deviation of weekly demand= 125 units

If the company wants to provide a 95 percent cycle service level, what should be the safety stock and the reorder print?

Reference no: EM132226551

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