Question: (a) Discuss the Monte Carlo Inventory Algorithm.(b) Consider a single-item periodic review inventory system with probabilistic demand and lead time. Assuming a normal probabilistic distribution

(a) Discuss the Monte Carlo Inventory Algorithm.(b) Consider a single-item periodic review inventory system with probabilistic demand and lead time. Assuming a normal probabilistic distribution for the demand and lead time and given an initial inventory level of 500 items with a unit cost of $10 and a weekly review period, obtain for 3 Monte Carlo simulations of 300 days:(i) The average service level, and(ii) The average cost per dayif the service level target is set at 92%(c)(i) State if the service level specified in (b) is achieved or not and plot the Monte Carlo simulations.(ii) Discus your observations when the service target level is increased to 95%.

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