Consider an item under $($ s $,$ Q $)$ control. Basic item information is as follows: D $=40,000$ units$/$year; A $=$ $$20$; r $=0\mathrm{.}25$ $$/$$$/$year; and v $=$ $$1\mathrm{.}60/$unit$.$ All demand when out of stock is backordered. The EOQ is used to establish the Q value. A service level of $0\mathrm{.}95($demand satis$$ed without backorder$)$ is desired. The item$$s demand is somewhat di$$cult to predict and two forecasting procedures are possible. System A $($complex$)$ B $($simple$)$ Cost to Operate per Year $($$$/$Year$)20035\backslash$sigma L $($Units$)1,0002,300$ Which forecasting system should be used? Discuss. Note: Forecast errors can be assumed to be normally distributed with zero bias for both models.