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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
Consider a retailer that has been serving a customer demand of exactly items per day over the past year. Suppose that it costs the retailer $ to hold an item inventory for a day; it costs the retailer $ to place an order with its distributor; and it takes days for an order placed with the distributor to arrive at the retailer. Suppose that it takes 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 for each stage. Assuming the customer demand continues to be exactly 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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