Question: Problem 3 Consider the plastic bottles demand pattern from question 1. Suppose I plan to instead set up a periodic review inventory system, and I

Problem 3 Consider the plastic bottles demand pattern from question 1. Suppose I plan to instead set up a periodic review inventory system, and I will order this item every 7 days. There is still a 2 day lead time. a. What is the protection interval ? b. What is the average demand during the protection interval? c. What is the standard deviation of demand during the protection interval? d. Using this periodic review system, what order up to level (T) would result in 100 units of safety stock? e. What is the predicted service level under this safety stock value? f. What order up to level is needed to provide 99% predicted service level? How much safety stock is associated with this policy. Problem 3 Consider the plastic bottles demand pattern from question 1. Suppose I plan to instead set up a periodic review inventory system, and I will order this item every 7 days. There is still a 2 day lead time. a. What is the protection interval ? b. What is the average demand during the protection interval? c. What is the standard deviation of demand during the protection interval? d. Using this periodic review system, what order up to level (T) would result in 100 units of safety stock? e. What is the predicted service level under this safety stock value? f. What order up to level is needed to provide 99% predicted service level? How much safety stock is associated with this policy

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