Question: Problem 2 7 and 2 8 : Periodic Review Inventory Models. A company uses the periodic review inventory model to calculate its reorder quantity. The

Problem 27 and 28: Periodic Review Inventory Models.
A company uses the periodic review inventory model to calculate its reorder quantity. The company currently places orders weekly. The item is produced and shipped from Asia with a lead time of eight weeks. The company currently has 1.000 items on hand. If the company uses the product at the rate of 250 per week, with a standard deviation of daily usage of 50 over the uncertainty period, what order quantity is needed to achieve a service level of 98 percent? (28.) How would a reduction in lead-time to four weeks affect the order quantity?
 Problem 27 and 28: Periodic Review Inventory Models. A company uses

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