starting half way through the review interval you can see that there is no outstanding order and that on hand is decreasing. the squiggly is not straight because its shows that demand is varying over time. when we get to the first review point,q1 is ordered. you can see that inventory position is greater than on-hand inventory during the lead time. at the end of the lead time the inventory position and on hand come back together and on hand is increased by q1. this process continues. you can see that in the second replenishment cycle the on-hand inventory is decreasing at a lower rate than in the first replenishment cycle. that is because demand is not as high. consequently,less in ordered at the second review.as you can see. q2