Question: ( 1 2 points ) A store has collected the following information on one of its products: Demand = 4 0 units / day Standard

(12 points) A store has collected the following information on one of its products:
Demand =40 units/day
Standard deviation of daily demand =5 units
Ordering costs =$30? order
Holding costs = $4/unit/year
Customer service level for 95%=1.65)
Lead-time =10 days
One year =250 operating days
a.(7 points) If a firm uses the continuous review system to control the inventory, what would be the order quantity and reorder point?
b.(5 points) The firm decided to change to the periodic review system to control the item's inventory. The review period is 10 days. For the most recent review, an inventory clerk checked the inventory of this item and found 200 units. There were no scheduled receipts or backorders at the time. How many units should be ordered?
( 1 2 points ) A store has collected the

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