What parameters would you pick


Assume that Wal-Mart buys a particular Television set for $85. The cost of placing an order for a shipment of TVs is $30. The cost of keeping inventory for Wal-Mart is 25% per year. They expect to sell an average of 500 TV sets in a year (standard deviation 25), at a fairly steady rate. The lead time is 2 weeks.If you were asked to create an (R,s,S) policy for this, what parameters would you pick? Give your reasons ( I did not give you a way to calculate these)

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