Question: 1. How does the service level provided by 100 units of safety stock under the reorder point policy compare to the service level provided by

1. How does the service level provided by 100 units of safety stock under the reorder point policy compare to the service level provided by 100 units of safety stock under the periodic review policy?

2. How does the quantity of safety stock required to provide 99% service level under the reorder point system compare to the quantity of safety stock required to provide 99% service level under the periodic review system?

3. Explain your results for the last two questions. Why do we see this difference between the two policies?

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