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2 . Consider a retailer that has been serving a customer demand of exactly 2 items per day over the past year. Suppose that it

2. Consider a retailer that has been serving a customer demand of exactly 2 items per day over the past year. Suppose that it costs the retailer $4 to hold an item inventory for a day; it costs the retailer $64 to place an order with its distributor; and it takes 2 days for an order placed with the distributor to arrive at the retailer. Suppose that it takes 1 day for an order placed by the distributor to arrive. Assume that the retailer and the distributor use (Q, R) echelon inventory policies (with, potentially, different values of Q and R), and the desired service level is 95.25% for each stage. Assuming the customer demand continues to be exactly 2 items per day, and that these policies are used for a very long (essentially infinite) time. After this very long time, determine the reorder points, Rr and Rd, for the retailer and the distributor, under the following independent scenarios: (a) All information is continuously shared between the distributor and the retailer; (b) The distributor uses the retailer order information to determine Rd

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