- Use the available data to develop inventory policies (order quantities and reorder points) for the FB378 and GS131. Assume the holding cost is 20% of unit price.
- Compare the inventory costs associated with your suggested order quantities with those of the current order quantities. What can you conclude?
- Do you think the lost customer sales should be included as a cost of inventory? How would such an inclusion impact the ordering policies you established in question 1?
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