Question: a . Calculate the optimal review interval, T * , at a warehouse. ( 3 points ) b . Calculate order - up - to

a. Calculate the optimal review interval, T*, at a warehouse. (3 points)
b. Calculate order-up-to level, M.(3 points)
c. Calculate the average inventory level, AIL (2 points)
d. Calculate the total cost, TC, per month (3 points)
e. Calculate the total cost and AIL of FOUR branches assuming that the demand is
identically and independently distributed (use the same 90% CSL).(3 points)
f. When the company consolidates the inventory at these warehouses into a single
warehouse, the company would like to improve the customer service level to 99%.
Given this scenario,
I. Calculate the optimal review interval, T*, at a warehouse. (3 points)
II. Calculate order-up-to level, AIL. (3 points)
III. Calculate the average inventory level, AIL(3 points)
IV. Calculate the total cost, TC, per month (3 points)
V. Expected percentage AIL saving four warehouse case (2 points)
VI. Expected percentage TC saving compared to four warehouse case (2 points)

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