Question: A single inventory is controlled by a continuous review ( R , Q ) policy. The lead time demand is normally distributed with mean 2

A single inventory is controlled by a continuous review (R,Q) policy. The lead time demand is normally distributed with mean 20 and standard deviation 5. The average inventory position is 30 The service level S1=0.90.
1. Calculate S2
2. Now instead the lead time demand follows an exponential distribution with mean 20.(all other assumptions are the same as before) Calculate S1
3.Assume again that the lead time demand follows an exponential distribution with mean 20. Determine the value of R if we want to attain the same level of S1 as in the original case (90%)?

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