Question: Using the same information as In Problem, develop the best policies for a periodic review system. A company begins a review of ordering policies [or

Using the same information as In Problem, develop the best policies for a periodic review system.

A company begins a review of ordering policies [or its continuous review system by checking the current policies for a sample of SKUs. Following are the characteristics of one item.

Demand (D) =64 units/week (Assume 52 weeks per year)

Ordering and setup cost IS) = $50/order

Holding cost (11) = $13/unit/year

Lead time (L) = 2 weeks

Standard deviation of uvsk1y demand 12 units

Cycle-service level = 88 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 level provide an 88 percent cycle-service level?

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