After taking an inventory control $10 may not be very accurate and the EOQ formula and then determines his reorder point such that there will be no stock-out in 90% seminar, the manager of Kroger decides that his stock-out cost of switches to a service level model. He decides to set his lot size by of the order cycles.
a. Find the resulting (Q,r) values.
b. Suppose that, unfortunately, he really wanted to achieve a 90% fill rate. what fill rate did he actually achieve from the policy determined in part (a)?