Assignment:
Consider the simulation of a continuous review (Q, R) inventory control policy. Define the relevant events for the system, and outline a procedure for the management of each event. To deal with a specific case, assume that customers arrive according to a Poisson process and order a random amount of items drawn from a given probability distribution. Lead time is assumed to be deterministic. First assume that customers are impatient, i.e., if their order cannot be satisfied immediately from stock, they are lost. Then, adapt the event management procedures to the case of patient customers (allowing for backlogged demand).
Provide complete and step by step solution for the question and show calculations and use formulas.