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Business, 26.03.2021 17:00 DaisyHargrove23
You are asked to manage the inventory system for a particular product at a retail store. The store has collected the following information on this product: Demand = 10,000 units/year Standard deviation of weekly demand = 25 units Ordering costs = $30/order Holding costs = $4/unit/year Cycle-service level = 95% Lead-time = 2 weeks Number of weeks per year = 50 weeksQuestion 1: Currently the store uses the periodic review policy to control the inventory. The optimal control parameter P= weeks and T= units. (Hint: please round your answer to the nearest positive integer number. E. g., answers between 12345.01 and 12345.44 should be rounded down to 12345, and answers between 12345.45 and 12345.99 should be rounded up to 12346) Question 2: Given the above optimal control policy for the periodic review system, the total annual cost for the inventory system is $:. (Hint: please round your answer to the nearest positive integer number) Question 3: Now the store is thinking about switching from the periodic review policy to the continuous review policy for the inventory system. The optimal control parameter R= units. (Hint: please round your answer to the nearest positive integer number) Question 4: Given the above optimal control policy for the continuous review system, The total annual cost for the inventory system is $:. (Hint: please round your answer to the nearest positive integer number)
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You are asked to manage the inventory system for a particular product at a retail store. The store h...
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