Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items....

Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 12 weeks, and the lead time for receiving the materials ordered from its wholesaler is 4 weeks. Weekly demand is normally distributed, with a mean of 125 units and a standard deviation of 25 units. Refer to the standard normal table LOADING... for z-values. a. What is the average and the standard deviation of demand during the protection interval? The average demand during the protection interval is nothing units. (Enter your response as an integer.)

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Expert Solution

Periodic review system also called fixed interval reorder system has four original economic order quantity assumptions: -

There are no restrictions on lot size.
ordering cost and carrying cost
demand should be independent
The lead time is constant.

Amanda K answered 2 years ago

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