Question: F. (10 marks) Given data about an item as follows, design a continuous review inventory control system for this item and determine the average inventory

F. (10 marks) Given data about an item as

F. (10 marks) Given data about an item as follows, design a continuous review inventory control system for this item and determine the average inventory level. Value 4 days 30% Relevant data Average lead time Annual carrying cost Procurement cost per order Forecasted daily usage Product value Lead time standard deviation Forecast error standard deviation In-stock probability 1 year = 365 days $90/order 120 units $40/unit 1.5 days 10 units 93%

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