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If petromax wants to provide a 90 cycle service level what


With the information provided can you please tell me how to obtain the safety stock?.

DEMAND= 50,000/YEAR

ORDERING COST= $35/ORDER

HOLDING COST= $2/ UNIT/ YEAR

AVERAGE LEAD TIME= 3 WEEKS

STANDARD DEVIATION= 125 UNITS

90% CYCLE SERVICE

If petromax wants to provide a 90% cycle service level, what should be the safety stock and reorder point?

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