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 S_1=0.90.
a) Calculate S_2.
b) Now instead the lead time demand follows an exponential distribution with mean 20 Calculate S_1
c) 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 S_1 as in the original case (90%)?

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