Turn the previous problem around. Now assume that the store’s service level requirement obligates it to meet customer demand on 99% of all order cycles. In other words, use model 4. What (R,Q) policy...


Turn the previous problem around. Now assume that the store’s service level requirement obligates it to meet customer demand on 99% of all order cycles. In other words, use model 4. What (R,Q) policy should it use? Then find the model 3 cost parameter (the cost per cycle with a shortage) that is equivalent to this service level.



May 22, 2022
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