Question Four: What is the impact of lead time, and lead time variability, on inventory levels (Simchi-Levi, Kaminsky, & Simchi-Levi, 2008, pg. 60) ?
Question Five: What factors should management consider when determining a target service level (Simchi-Levi et al…2008, pg. 60)?
Question Six: Consider the (Q, R) policy analyzed in Section 2.2.6. Explain why the expected level of inventory before receiving the order is: