K = $35, p = $1.20/gallon
annual h = (35%/year) x ($1.20/gallon) = $0.42/year per gallon
R = 5000gallon/week = 5000gallon/week x 52week/year = 260,000gallon/year
EOQ = sqrt(2KR/h) = sqrt(35500052/0.42)=6583 gallons.
No. of orders per year = (R/Q) = 260,000/3800 = 68.42 orders/year
Order Cycle Time = 52 / 68.42 = 0.76 weeks
As there is no lead time so reorder level will be 5000 Gallon.
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