$($a$)$ State two alternative service measures that Wendy can use to compute customer

service level and describe how these two service levels differ.

$(1$ mark$)$

$($b$)$ Wendy wanted to identify the service level currently offered by the FGI to the Kreative

Hub at Changi. Compute the service level in terms of the coverage probability $($Type

$1$ service level$)$ provided to the Kreative Hub at Changi using the inventory policy

currently used by FGI.

$(4$ marks$)$

$($c$)$ Wendy wanted to know the expected stock$-$outs of the FGI to the Kreative Hub at

Changi. Compute the average number of stock$-$outs the Kreative Hub at Changi may

expect per year from FGI using their current method?

$(4$ marks$)$

$($d$)$ What is the expected average inventory level of the Model XR$3$i Sound Blasters at the

FGI using their current method?

$(3$ marks$)$

$($e$)$ Wendy recommended the FGI Controller to use continuous review Q$-$R Policy to

control the inventory with re$-$order quantity equal to that of the economic order

quantity $($EOQ$).$ Assume the order cost $($including factory setup$)$ is $$40$ per order

placed and holding cost per week is $$1\mathrm{.}12$ per unit. What will be Wendy's order

quantity based on her revised policy recommended?

$(3$ marks$)$

$($f$)$ Assume that Wendy requires to provide a coverage probability $($Type $1$ service level$)$

of $99\%$ for Model XR$3$i Sound Blasters. What is the re$-$order level in order to provide

such service? How many stock$-$outs Wendy may expect per year under this new

policy?

$(5$ marks$)$

$($g$)$ What will be the expected average inventory of the Model XR$3$i Sound Blasters in the

FGI when they use inventory control policy proposed by Wendy?

$(3$ marks$)$

$($h$)$ Assuming the Model XR$3$i Sound Blasters is a high$-$end consumer item, which policy

should Wendy recommend and state why?