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Consider a retailer that uses continuous review to monitor its inventory of a particular product. The retailer purchases the product from a distributor with a
Consider a retailer that uses continuous review to monitor its inventory of a particular product. The retailer purchases the product from a distributor with a lead time of exactly two weeks. The retailer currently has an ROP=170 units and achieves a particular CSL. Suppose the product has normal weekly demand with a mean of 40 units per week and a standard deviation of 10 units per week. If the average weekly demand doubles to 80 units per week, what ROP the retailer should use if they want to achieve the same CSL as before? Type your answers. 5 points Consider the retailer from Question 1 (with an average weekly demand of 40 units). If the retailer would like to achieve a CSL =0.5, what ROP should they use? Type your
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