Question: (Please do it in a Microsoft words) PROBLEM 3A: A PERIODIC REVIEW PROBLEM. A drugstore uses a fixed-order cycles for many of its items it

(Please do it in a Microsoft words)

(Please do it in a Microsoft words) PROBLEM 3A: A

PROBLEM 3A: A PERIODIC REVIEW PROBLEM. A drugstore uses a fixed-order cycles for many of its items it stocks. The manager wants a service level of 98%. The order interval is 14 days, and lead time is 2 days. Average demand for one item is 40 units per day and the standard deviation of demand is 3 units per day. Given the on-hand inventory at the reorder time for each order cycle shown in the table, determine the order quantities for cycles 1, 2, and 3. Cycle 1 2 3 On-Hand 42 8 103 PROBLEM 3B: AN A-B-C ANALYSIS PROBLEM The following table contains figures on the monthly volume and unit costs for a random sample of 16 items for a list of 2,000 inventory items at a health care facility. Item K34 Unit Cost 10 Usage 200 K35 K36 25 36 600 150 25 M10 16 M20 20 80 80 245 F14 F95 250 300 20 30 800 F99 20 60 D45 10 550 D48 12 90 110 D52 15 D57 40 120 NOS 30 40 500 POS 16 P09 30 1. Develop an A-B-C classification for these items 2. How could the manager use this information

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