Question 2 Best Denki in Clementi is using a fixed period inventory system to manage its inventory of the Philips kettle. The following information is given: Ordering cost is $120 per order, Unit price is $20, Lead-time is 2 months, Carrying/holding rate is 20%, and Standard deviation of monthly demand is 100. Assume 4 weeks per month. Service level = 95% The average demand for the kettle is given by 1,200 units per month. (a) Analyse this inventory system by calculating the review period and optimal replenishment level with safety stock. Comment on how the system should be managed. (17 marks) (b) The store is planning to carry a newly introduced kettle from another manufacturer along with the existing Philips kettle. Which product do you think the store should hold more safety inventory? Why? (8 marks)