Question $3$

$3$ pts

An Office Manager uses a Periodic Review Inventory System: they check the inventory in the Office Supply Closet once every

$10$ days, placing an order with their supplier depending on the inventory level in the closet. Once the order is placed, it takes

days to receive the order. The average demand for file folders is $70$ per day. This week, the operator has counted $240$ file folders

in the closet.

What is the Minimum Restocking Level $($restocking policy$)$ needed to cover expected demand over time without stocking out?

Order Quantity: $Q=R-1,$ where

$R=$ restocking order$-$up$-$to level

$I=$ inventory level at the time of review

Minimum Restocking Level $=d(RP)+d(L)$

$RP=$ reorder period: time between orders

$L=$ replenishment lead time $($time periods$)$

$d=$ average demand per time period

$910$ file folders

J file folders

$460$ file folders

$700$ file folders

$490$ file folders

Question $4$

$3$ pts

Using a computerized Inventory Management System, a Paint Supply Store franchise continuously monitors the inventory of all