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Consider the problem of satisfying the demand for number 2 pencils faced by the campus store mentioned in problem 29.
a) Re-solve the problem, substituting a Type 1 service level criterion of 95 percent for the stock out cost.
b) Re- solve the problem, substituting a Type 2 service level criterion 95 percent for the stock out cost, assume that is given by that EOQ.
C) Find the simultaneous optimal values of Q and R assuming a Type 2 service level of 95 percent.
Above question is from Production and Operations Analysis - BY Steven Nahmias and Tava Lennon Olsen 7th Edition.
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