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FairPrice Xtra in Jurong Point is using a fixed period inventory system to control its inventory of brown sugar ice cream from Taiwan. The average

FairPrice Xtra in Jurong Point is using a fixed period inventory system to control its inventory of brown sugar ice cream from Taiwan. The average monthly demand for brown sugar ice cream is 1,000 tubes and the following information is available:
Lead time =1 month
Ordering cost = $150 per order
Unit price = $10
Carrying/holding rate =20%
Standard deviation of monthly demand =80.
Assume 4 weeks
Analyse the review period and optimal replenishment level with safety stock. Comment on how the system should be managed.

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