Question: Read the problem below and then identify the type of inventory model that should be applied The inventory at Geiger s Gadgets is reviewed continuously.
Read the problem below and then identify the type of inventory model that should be applied
The inventory at Geigers Gadgets is reviewed continuously. They need an inventory policy to control replenishment of their popular Gidget Gadget. The store sells about Gidgets per week; weekly demand is approximately normally distributed with a variance of The Gidgets cost $ to Geigers and they sell for $ each. The fixed cost to order a batch is $ and the annual interest rate is If a Gidget is not in stock when requested, the customer buys it later; the loss of goodwill is estimated about $ per Gidget. The replenishment leadtime is weeks, and there are weeks in a year. How should they choose their inventory policy to satisfy of their demand?
Group of answer choices
Q R Model
Q R Model with Type Service
Q R Model with Type Service
NewsVendor Model
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