Using the same information as in Problem 16, develop the best policies for a periodic-review system.
Thus,
• Demand (D) = 94 units/week (assume 52 weeks per year)
• Ordering and setup cost (S) = $720/order
• Holding cost (H) = $23/unit/year
• Lead time (L) = 3 weeks
• Standard deviation of weekly demand = 30 units
• Cycle-service level = 82 percent
a. What value of P gives the same approximate number of orders per year as the EOQ? Round to the nearest week.
b. What safety stock and target inventory levels provide a 90-percent cycle-service level?