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S&T is a retailer of home goods. They receive inventory from their supplier with a 2-week lead time. Assume they order weekly, and they use

S&T is a retailer of home goods. They receive inventory from their supplier with a 2-week lead time. Assume they order weekly, and they use the order-up-to model for managing inventories. A peppermint soap sells on average one box every 5 weeks. AssumeS&T's demand is Poisson distributed.

d)Suppose due to recent global supply chain disruptions, S&T's supplier increases the lead time to three weeks. Given the additional risks posed by global supply chain disruptions, S&T decides to increase its order-up-to level to 2 boxes. What is their stockout probability?

e)Given the new lead time (i.e., three weeks), suppose S&T wants to minimize inventory while achieving at least a 0.9875 in-stock probability for the peppermint soap. What order-up-to level (in boxes) should they use?

f)Given the new lead time (i.e., three weeks), suppose S&T uses an order-up-to level of 3 boxes. What is the expected on-order inventory?

PLEASE SHOW MATH

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