Question: Problem 2. (10 points) Cat Lovers Inc. (CLI) is the distributor of a very popular blend of cat food. CLI experiences demand of 500 cans

Problem 2. (10 points) Cat Lovers Inc. (CLI) is

Problem 2. (10 points) Cat Lovers Inc. (CLI) is the distributor of a very popular blend of cat food. CLI experiences demand of 500 cans per week and orders the cat food from Nutritious & Delicious Co. (N&D). N&D sells cans to CLI at $1.00 per can and charges a flat fee of $5 per order for shipping and handling. The delivery lead time is 5 days. Assume that CLI has a 20% annual inventory carrying rate. Assume 50 weeks in a year for simplicity. Answer the following questions. Show your work to receive full credits. 1. (6 points) What is the optimal (Q,R) policy for CLI? 2. (4 points) Under the inventory management policy in part 1, how many times would CLI order each year? How long is an order cycle, that is, how often does CLI order

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