= Problem 2: (Q,s) system (Problem 8.3-page 350 textbook) Ceiling Drug is concerned about the inventory control of an important item. Currently they are using an (Q,s) system where Q is the EOQ and the safety stock factor k is selected based on a Buv shortage costing method. Relevant parameter values are estimated to be: Demand rate D = 2500 units per year, unit variable cost v = $10 per unit, ordering cost A = $5, carrying rate r = 0.25 $/$/year, fractional charge per unit short B2 = $0.6, mean demand during lead time l 500 units, lead time demand standard deviation ou 100 units. What are the Q and s values currently in use? b. Determine the simultaneous best value of Q and s. What is the percent penalty (in the total of replenishment, carrying, and shortage costs) of the simpler sequential approach? - a. C