7.4 In relation to an (s,Q) inventory control system, an operations analyst has made the following observation: Suppose we determine Q from the EOQ; then find the safety factor from the "fraction demand satisfied routinely from shelf" criterion. Suppose that through explicit cost considerations we estimate r to be a particular value rl. Now if we deliberately set r at a lower value r2, when determining Q and s, we can reduce actual total relevant costs. a. Could the analyst be telling the truth? Attempt to develop an analytic proof. b. Illustrate with an item having the following characteristics: DvArl=$4000/year=$100=0.2$/$/yearLv=$500P2=0.975