Average demand Standard deviation of demand 1,600 units per week 300 units per week - 2 weeks Lead time - Purchasing cost $52 per unit Holding cost 25% per unit per year Order cost = $100 per unit =97.5% Required Service Level (a) a. (8 pts.) Design a continuous review system (i.e., Q,R) using the required service level. Find the order quantity (Q), average demand during lead time, safety stock, reorder level (R) and the order-up-to level. What is the average inventory level? (You can use the standard normal distribution table at the last page of the exam booklet). b. (8 pts.) Design a periodic review system (i.e., base-stock level) using an order interval (r) of 4 weeks. Find the safety stock and the base-stock level. What is the average inventory level? (You can use the standard normal distribution table at the last page of the exam booklet). c. (4 pts.) For the continuous and periodic review systems in part (a) and (b), how much will you order if the inventory level is 4800 units? Average demand Standard deviation of demand 1,600 units per week 300 units per week - 2 weeks Lead time - Purchasing cost $52 per unit Holding cost 25% per unit per year Order cost = $100 per unit =97.5% Required Service Level (a) a. (8 pts.) Design a continuous review system (i.e., Q,R) using the required service level. Find the order quantity (Q), average demand during lead time, safety stock, reorder level (R) and the order-up-to level. What is the average inventory level? (You can use the standard normal distribution table at the last page of the exam booklet). b. (8 pts.) Design a periodic review system (i.e., base-stock level) using an order interval (r) of 4 weeks. Find the safety stock and the base-stock level. What is the average inventory level? (You can use the standard normal distribution table at the last page of the exam booklet). c. (4 pts.) For the continuous and periodic review systems in part (a) and (b), how much will you order if the inventory level is 4800 units