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TStar is holding large number of products in their inventory. Having observed that ordering the products in different times increases the operational complexity, they decided to use a joint periodic review inventory control approach for some products that are grouped together. Products A and B fall in the same group. The detailed information for these products is presented in the table below. According to this answer the following questions. (5 points each)

	Item
	A	B
Demand forecasts, units/day	25	50
Error of the forecast, units/day	7	11
Lead time, days	21	21
Inventory carrying cost, %/year	24	24
Procurement cost, dollars/order/item	35	20
with a common cost of, dollars/order	-15
In-stock probability during order cycle plus lead time	95%	95%
Product value, dollars/unit	150	75
Selling days per year	365	365

1. What is the common order review period in terms of days? (i.e., T)
2. What is the length of the planning horizon?
3. What is the regular stock needed for product A during the planning horizon?
4. What is the safety stock needed for product A during the planning horizon?
5. What is the maximum inventory level (M) for product A?
6. What is the regular stock needed for product B during the planning horizon?
7. What is the safety stock needed for product B during the planning horizon?
8. What is the maximum inventory level (M) for product B?

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