Inventory Analysis

1. What is actual inventory and service level?

2. If the order frequency is 8 orders in 21 days, is the current actual for inventory and service level optimal? Why or why not?

3. Name two optimal points (service level, inventory $$) on the curve representing an order frequency of 8 orders in 21 days. 4. If inventory for this business was very expensive and capacity was very cheap, what point (inventory $$, service level) on the curve representing 8 orders in 21 days would you choose if customers demanded quick deliveries? Please provide rationale for your decision.

Case inventory questions use the chart below