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Chapter$-12$ Inventory Manag

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$3.$ A company is having issues with their ERP system which gives them unreliable information about inventory levels and requires constant corrections. They currently have a ROP of $41,741$ units, a safety stock of $1241$ units and a daily demand of $900$ units with a standard deviation of $100$ units daily.

They are thinking of going to a FIXED PERIOD MODEL system where they will manually check their inventory once a month $($i$.$e$.$ the review period is $30$ days$).$ They can, however, only hold a maximum safety stock of $1500$ units. With the new fixed period system, will they be able to match the service level of the current EOQ system? Assume the lead time is always constant.

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