Inventory System Problem Parameters
Daily demand for an an inventory item is normally distributed with average value of 47 units per day
The standard deviation of daily demand is 6
The item is used 365 days per year
We buy the item for $70 per unit
Each time we order, we incur fixed ordering costs of $100 per order
Our annual carrying cost rate is 25%
When we order replenishment inventory, the order lead time is 6 days
The ordering policy currently being used is:
Whenever inventory position falls to R = 320 units, an order is placed for Q = 660 units

Find the optimal order quantity for this item under the order point (or Q, R) ordering system.

Based on your answer to the previous question, what should we use as the time between orders (in days) if we were going to use a periodic review (P, T) system for this item?