One of the largest selling items in J.C. Ward's Department Store is a new model of refrigerator that is highly energy-efficient. About 80 of these refrigerators are being sold per month. It takes about a week for the store to obtain more refrigerators from a wholesaler. The demand during this time has a uniform distribution between 10 and 30. The administrative cost of pincing each order is $100. For each refrigerator, the holding cost per month is $15 and the shortage cost per month is estimated to be $3.
The store's inventory manager has decided to use the stochastic continuous-review model with a service level (measure 1) of 0.8 to determine an (R, Q) policy.
Solve for R and Q.