Question: C . Problem Solving. ( 2 0 points ) A store uses a ( Q , R ) inventory system to control its stock levels.

C. Problem Solving.
(20 points) A store uses a (Q, R) inventory system to control its stock levels. For a particular
part, historical data show that the distribution of monthly demand is approximately normal, with
mean 28 and standard deviation 8. Replenishment lead time for this part is about 4 weeks. The
optimal EOQ for this part has been determined to be equal to 75. The owner of the store would
like to maintain that there is no stock-out in 95% of the order cycles.
(a) Find the resulting (Q,R) values.
(b) Suppose that he wants to achieve a 90% fill rate. What fill rate did he actually achieve from
the policy determined in part (a)?
 C. Problem Solving. (20 points) A store uses a (Q, R)

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