Question 4 (40 points). You are overseeing the inventory planning of a product for which the ordering cost is $100, interest rate is 20 percent per year, and capital cost of the product is $50. The total order lead time is 3 weeks. Suppose your competitor is offering infrequent and unpredictable discounts on the same product that you are selling and as a result you are experiencing more variability in demand. Although you are facing an average customer demand per year of 5000 units, your week-to-week variance in total sales is now o>= 400 units? a. You decide to implement a continuous review control policy. Suppose you wish to be 90% certain you can satisfy all customer demand during each order cycle. What should your reorder point, ROP, be? b. If instead you choose to implement a periodic review inventory control policy, how often should you place orders? What should your order-up-to level, OUL, be if you still want to be 90% certain that you satisfy all customer demand during each order cycle? c. Finally, suppose that demand variability disappears, such that o= 0. What is your new reorder point ROP? What is your new OUL