A local shop has a relatively stable demand for cans of sweetcorn throughout the year, with an average 10 cans per day. The shop is open 7 days per week, 365 days per year. The ordering cost is estimated at $15. Inventory holding costs are $0.50 per can per year. Lead time is two weeks. Backorders are not allowed. Determine the appropriate inventory policy, i.e., optimal order quantity and reorder point. Describe in a sentence how the plan would work. Manager of the shop is concerned about this inventory policy because he has recently recognized several demand fluctuations. He got a sample of daily demand and determined the standard deviation of demand to be 4.35 cans per day. The manager is interested to have a 98 percent service probability. Determine a new inventory policy based on this information and the data in part (a). Use optimal order quantity from part (a).

A local shop has a relatively stable demand for cans of sweetcorn throughout the year, with an average 10 cans per day. The shop is open 7 days per week, 365 days per year. The ordering cost is estimated at \\( \\$ 15 \\). Inventory holding costs are \\( \\$ 0.50 \\) per can per year. Lead time is two weeks. Backorders are not allowed. Determine the appropriate inventory policy, i.e., optimal order quantity and reorder point. Describe in a sentence how the plan would work. - Manager of the shop is concerned about this inventory policy because he has recently recognized several demand fluctuations. He got a sample of daily demand and determined the standard deviation of demand to be 4.35 cans per day. The manager is interested to have a 98 percent service probability. Determine a new inventory policy based on this information and the data in part (a). Use optimal order quantity from part (a)