Question: ONLY NEED PART E PLEASE HELP You are asked to manage the inventory system for a particular product at a retail store. The store has

ONLY NEED PART E PLEASE HELP You are asked toONLY NEED PART E PLEASE HELP

You are asked to manage the inventory system for a particular product at a retail store. The store has collected the following information on this product: Demand = 10,000 units/year Standard deviation of weekly demand = 25 units Ordering costs = $30/order Holding costs = $4/unit/year Cycle-service level = 95% Lead-time = 2 weeks Number of weeks per year = 50 weeks A: Currently the store uses the periodic review policy to control the inventory. What would be the optimal control parameters (P, T)? (LT) = (1.935, 868.82) B: Given the above optimal control policy for the periodic review system, what is the total an- nual policy-related cost for the inventory system? $1714 C: Suppose T = 900 is actually used for the periodic review system. What is the cycle-service level for the inventory system? 459 D: Now the store is thinking about switching from the periodic review policy to the continuous review policy for the inventory system. What would be the optimal control parameters (R, Q) for the continuous review policy? (R,Q) = (458.16, 387.29) E: Given the above optimal control policy for the continuous review system, what is the total annual policy-related cost for the inventory system

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!