Discuss the below problems:
For an inventory item, suppose the demand is 240/week, the order frequency is 8/year, lead time is 1.3 weeks, and safety stock is 7
Q1. Find the inventory policy for a periodic review system.
Q2. Find the inventory policy for a continuous review system.
Q3. How many of the statements are true?
Statement 1. The order frequency is 2/quarter.
Statement 2. The inventory turnover is 1040/month
Statement 3. The inventory turnover rate is 16/year
Statement 4. The inventory period is 0.5 weeks
Q4. How many statements are true?
Statement 1. The stockout level increases as the safety stock increases.
Statement 2. The turnover rate increases as the lot size increases.
Statement 3. The lot size increases as the inventory period increases.
Statement 4. The inventory period increases as the order frequency increases.