Discuss the below:
Q: Let demand, D, follows N(1000, 50^2) bundles of products yearly. The delivery lead lime is 3 weeks. Each order costs $60 regardless of the order quantity (i.e., ordering cost is $60) If we keep one bundle of the product, it costs us $10per years. Per bundle, stock out cost is $45 Demand is backlogged. We continuously review the inventory. Determine these:
a) Probability of stock out during the lead time
b) Reorder point
c) Safety stock