You have a continuous replenishment $($Q$/$r Type system$)$ and your current needs for a procured product from a Supplier $1$ are as follows:

A$.$ What is your implied fill rate for this policy? What is $($should be$)$ your ordering policy in this case to minimize costs? What is the total inventory management cost of this one item?

B$.$ The particular business is out for RFP $($Request for proposal$)$ with an alternative supplier $($Supplier $2)$ who promises to supply the same product with reduced lead time, increased service, and improvement to total costs. Their proposal has the following terms:

What is $($should be$)$ your ordering policy in this case to minimize costs? What is the total inventory management cost of this one item under these terms, and should you accept the new proposal from