Question: A warehouse manager must set up inventory ordering systems for two new distribution items, x and Y . Item x can be ordered at any

A warehouse manager must set up inventory ordering systems for two new
distribution items, x and Y. Item x can be ordered at any time, but item Y can
only be ordered once every three weeks. The company operates 50 weeks a year
and the weekly demand for both items is normally distributed. The manager has
gathered the following information about the items:
a. When should the manager reorder each item?
b. Compute the order quantity for Item X.
c. Compute the order quantity for Item Y if 500 units are on hand at the time
the order is placed.
d. Compute the optimal order interval for Item Y (i.e., the current three-week
order interval may not be optimal).
e. Compute the savings in average inventory carrying costs if Item Y can be
ordered at any time (rather than once every three weeks).
 A warehouse manager must set up inventory ordering systems for two

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