Question: Problem Statement: Periodic Review (P) Inventory System A retailer keeps an inventory for its bestselling SKU. The weekly demand rate for the SKU is horizontal

Problem Statement: Periodic Review (P) Inventory

Problem Statement: Periodic Review (P) Inventory System A retailer keeps an inventory for its bestselling SKU. The weekly demand rate for the SKU is horizontal and random. The mean value of demand rate is 200 units/week, and its standard deviation is 25 units/week. The order's shipment lead-time is 2 weeks. We assume there are 50 weeks in a year. The ordering cost is $500/order. The inventory holding cost is $15 per unit per year. Suppose that the manager of the retailer uses the Periodic Review (P) system to manage the inventory. The manager reviews the inventory and orders for resupply every 3 weeks. Please answer the following questions. The Normal Distribution table is available at Normal distribution table.pdf . Question 24 3 pts To meet the cycle service level requirement of 95%, the manager must set the Target Inventory Position to be: (Please round your answer as the whole number.) Question 25 3 pts At the beginning of the current review cycle, the manager finds that there are 150 units in backorder and 45 units in transit to the retailer. For this review cycle, the manager should order: (Please report your answer as the whole number.)

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