The Toyota dealer from problem 3 is considering installing either a Q or a P system for

Question:

The Toyota from problem 3 is considering installing either a Q or a P system for inventory control. The standard deviation of demand has been 4 units per month, and the replenishment lead time is two months. A 95 percent service level is desired.
a. If a continuous review system is used, what is the value of Q and R that should be used?
b. If a periodic review system is used, what is the value of P and T that would be applicable?
c. What are the pros and cons of using the P system compared with using the Q system for this part?
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...