Question: 1. Consider an item with the following demand pattern: Month 1 2 3 4 5 5 6 7 8 8 10 11 12 Demand 65

1. Consider an item with the following demand

1. Consider an item with the following demand pattern: Month 1 2 3 4 5 5 6 7 8 8 10 11 12 Demand 65 80 110 120 80 100 150 150 70 35 35 20 Inventory carrying cost per month is $0.25/unit. Fixed cost per replenishment is $25. (1) Determine the sizes and timing of replenishments of stock using appropriate approach. Calculate EOQ based on the yearly demand. Assume each order size is equal to EOQ. Calculate the timing of replenishments for the above demand and compare it with your previous solution. Compute all the relevant costs in both the cases (holding cost, ordering cost). (iii)

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