Task:

Using alpha=0.4, starting inventory of 500, holding cost of $1/item/period and lost sales cost of $5/item, what is the cost of this customer satisfaction policy? And you need to satisfy 0.9986% of the expected demand.

Attach excel sheet of calculations.

P	F	SQRT (MSE)	R	Procure	Starting inventory	Demand	Sales	Ending Inventory	Lost sales
11					500
12
13
14
15
16
17
18
19
20