"Jill, the office manager of a desktop publishing outfit, stocks replacement toner cartridges for laser printers. Demand for cartridges is approximately 30 per year and is quite variable (i.e., can be represented using the Poisson distribution). Cartridges cost $100 each and require three weeks to obtain from the vendor. Jill uses a (Q,r) approach to control stock levels
a)if jill wants to restrict replenishment orders to twice per year on an average what batch size Q should we use? using batch size what re order point r should she use to ensure a service level of at-least 98%?
b)if Jill is willing to increase the number of replenishment orders per year to six how do Q and r change? explain difference in r.
c)if the supplier of toner cartridges offer a quantity discount of $10 per cartridge for order of 50 or more how does this affect the relative attractiveness of ordering twice per year versus ordering six times per year?try to frame tour answer in definite economic terms""