Question: A retail store wants to optimize its inventory management for a specific product category to minimize stockouts while avoiding excessive inventory holding costs. The store

A retail store wants to optimize its inventory management for a specific product category to minimize stockouts while avoiding excessive inventory holding costs. The store currently sells an average of

100

units of the product per week, with a standard deviation of

20

units. The lead time from placing an order to receiving it is

2

weeks, and the desired service level is

95 % .

Using the inventory control model, calculate the reorder point and order quantity for the product.

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