Question: The inventory level for an item is reviewed on a continuous basis and the retailer uses a ( q , r ) policy to manage
The inventory level for an item is reviewed on a continuous basis and the retailer uses a qr policy to manage the inventory for the item. The delivery lead time for the item is weeks. The weekly demand for the item is normally distributed with a mean of units and a standard deviation of units. Currently, the retailer places an order equivalent to weeks' demand when there are weeks' demand worth of inventory is left.a points What are the current order quantity and reorder level for this item?b points What are the parameters of demand during lead time for this item?c points What is the implied Type I service level under the current policy?d points What is the implied Type II service level under the current policy?
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