Question: 4. A company is having issues with their ERP system which gives them unreliable information about inventory levels and requires constant corrections. They currently have

4. A company is having issues with their ERP system which gives them unreliable information about inventory levels and requires constant corrections. They currently have a ROP of 41,741 units, a safety stock of 1241 units and a daily demand of 900 units with a stdev of 100 units daily.

They are thinking of going to a FIXED PERIOD MODEL system where they will manually check their inventory once a month. They can, however, only hold a maximum safety stock of 1500 units. With the new FIXED PERIOD MODEL system, will they be able to match the service level of the current EOQ system?

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