Discuss the below in detail:
Q1) What problems does the periodic review inventory model with uncertain demand create? What is the implication for safety stock? What does this tell you about the differences in fill rates between SKUs?
Q2) What does "Ice cream is obviously a seasonal product" tell you about how service levels will change throughout the year? Think about shelf space and the implications for safety stock.
Q3) What does "There were definitely transportation and inventory holding costs associated with the free rides" tell you about the inventory holding cost factor? Is it the same for low inventory levels as it is for high inventory levels? Why?
Q4) How does "route sequence" affect fill rates at different stores? What could you do about it?
Q5) Would it be better to use a single truck in a route to replenish both types of customer or to handle one route with two trucks, one for each kind of customer? What are the tradeoffs to consider?