Read the case from the case pack:

Stock$-$up vs Stock$-$out: The Inventory Management Dilemma at a Mobile Clinic.$$

Answer the following questions:

Name two performance indicators you will use to measure the performance of the clinic's inventory policies. Why do you think they are the most appropriate measures here?

Using the past seven month's data, give your measures for those two indicators.$$

What is the average daily demand at the clinic? What is the standard deviation of this daily demand? What is the lead time $($in days$)?$ Is there a standard deviation of lead time?

Suppose the clinic monitors inventory continuously. At $99\%$ service level, how much should be the order quantity? How much safety stock needs to be carried? What is the re$-$order point? How much inventory, on average, will the clinic have?$$

Do the same analysis for $97\mathrm{.}5\%$ service level. What is the average inventory requirement in this scenario? How much can the clinic save on average inventory if they plan for $97\mathrm{.}5\%$ service level?

Suppose the clinic monitors inventory periodically. What is the review interval $($in days$)?$

What is the safety stock, order$-$upto$-$level, and average inventory if the clinic monitors inventory periodically, and targets $99\%$ service level?

What is the safety stock, order$-$upto$-$level, and average inventory if the clinic monitors inventory periodically, and targets $97\mathrm{.}5\%$ service level? How much can the clinic save on average inventory if they plan for $97\mathrm{.}5\%$ service level?

What are the pros and cons of the continuous inventory monitoring and the periodic inventory monitoring? Which one would you recommend for this scenario and why?

What are the pros and cons of $99\%$ service level and $97\mathrm{.}5\%$ service level? Which one would you recommend for this scenario and why?