Question: 1 . Consider a continuous review policy inventory system. The weekly demand is assumed to be normally distributed with a mean of 5 0 0

1. Consider a continuous review policy inventory system. The weekly demand is assumed to be normally distributed with a mean of 500 and standard deviation of 300. Lead time is 3 weeks.
(a) ROP is taken as 2450. Calculate safety stock and cycle service level.
(b) For a Cycle service level of 96%, compute safety stock and ROP.

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