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Business, 22.11.2021 14:00 nacgrading3p6d8pf

A local car dealer has to decide how many spare shock absorbers of a particular type to order for repairing automobiles. This shock absorber has a demand of four units per month and costs $25 each. The carrying charge is 30 percent per year, and the ordering cost is $15 per order. The Toyota dealer 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

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