3- Tom and Stacy work together to order items for a large clothing retailer. They disagree about ordering a popular jeans brand from Italy. The demand for the jeans is variable and follows Normal distribution. They use (Q, R) policy to manage their inventory. Stacy suggests that they should order 200 pairs when their inventory reaches or falls below 50. While Tom agrees that the order size should be 200, he thinks that they should place an order when their inventory reaches or falls below 80.

Explain why each of the following statements is true or false.

a. Stacys policy results in higher service levels than those under Toms policy.

b. Stacys policy is expected to result in more number of orders placed in a year than that under Toms policy.

c. Toms policy results in lower average shortage cost in a year than that under Stacys policy.

d. Toms policy results in lower total expected annual cost than that under Stacys policy.