Chapter 9, Problem 32P

A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its 1-irons, which have the following characteristics: $\begin{array}{l}\text{Demand }\left(D\right)=\text{2},000\text{ units}/\text{year}\\ \text{Demand is normally distributed}\text{Standard deviation of}weekly\text{demand}=\text{3 units}\\ \text{Ordering cost}=\text{ 4}0/\text{order}\\ \text{Annual holding cost }\left(H\right)=\$\text{5}/\text{units}\\ \text{Desired cycle}-\text{service level}=\text{9}0\text{ percent}\\ \text{Lead time }\left(L\right)=\text{4 weeks}\end{array}$

1. If the company uses a periodic review system, what should P and T be? Round P to the nearest week.
2. If the company uses a continuous review system, what should R be?