Consider an inventory system with 4 items: Item i (units/year) G 1 7.200 2.00 2 4,000 0.90 3 500 5.00 4 2.500 0.81 The inventory manager argues that there is no way that he can evaluate K and i; however, he admits that K/i is reasonably constant across the items, which he assumes to be 500. He has been following a "power-of-two policy for each item, where the base- period is a month. a) Characterize the policy followed by the manager. b) What K/i value gives the same average cycle stock (in dollars) under EOQ as the current rule? c) What K/i value gives the same N under EOQ as the current rule? Consider an inventory system with 4 items: Item i (units/year) G 1 7.200 2.00 2 4,000 0.90 3 500 5.00 4 2.500 0.81 The inventory manager argues that there is no way that he can evaluate K and i; however, he admits that K/i is reasonably constant across the items, which he assumes to be 500. He has been following a "power-of-two policy for each item, where the base- period is a month. a) Characterize the policy followed by the manager. b) What K/i value gives the same average cycle stock (in dollars) under EOQ as the current rule? c) What K/i value gives the same N under EOQ as the current rule