Question 2. Consider an item whose inventory is controlled by a continuous review policy. Suppose the replenishment lead-time is 1 week (7 days), and the weekly demand is normally distributed with mean 250 and standard deviation 64.55. Assume optimal order quantity is 250 units. Part A. Suppose we set R = 282. What is the service level? Part B. What is the average inventory level? Part C. What should the safety stock be if we want to provide a service level of 98%? Part D. Modify your answer to Part A if we know that the demand is uniformly distributed in [138.2, 361.8]; i.e. it has the same mean 250 and standard deviation 64.55. Part E. Suppose we have two categories of customers, gold and silver. We promise a higher level of service to the gold customers (e.g., 95% of demand is satisfied from stock); for silver customers, the service level would be lower, e.g., 85% of demand satisfied from stock. Describe how you might manage the inventory to serve the two demand classes? (We don't expect you to find a specific policy, but you should attempt to describe conceptually how you might structure a policy and then operate with this policy)