Question: 1. The following questions involve inventory management using the demand data in the table below for 14 weeks (weeks 12-25 for the year) for one
1. The following questions involve inventory management using the demand data in the table below for 14 weeks (weeks 12-25 for the year) for one product.
| week | demand | Inventory (410 to start) |
| 12 | 60 | |
| 13 | 30 | |
| 14 | 50 | |
| 15 | 60 | |
| 16 | 70 | |
| 17 | 50 | |
| 18 | 60 | |
| 19 | 50 | |
| 20 | 30 | |
| 21 | 40 | |
| 22 | 50 | |
| 23 | 30 | |
| 24 | 30 | |
| 25 | 40 |
Suppose inventory is managed with a continuous review system where the order size Q is 300 units and the reorder point R = 240 units. The previous order was at the end of week 9 and the order amount was 300 units. The lead time is a constant 2 weeks. At the beginning of week 12 the inventory level is 410 units. Orders are made at the end of a week.
(i) Fill in the empty column in the table above with the inventory level at the end of each week.
(ii) The next order is made at the end of week
a) 14. b) 15. c) 17. d) 20. e) none of the above.
(iii) The size of the next order is
a) 140. b) 210. c) 240. d) 300. e) none of the above.
(iv) The next order (after the one in part (ii), is made at the end of week
a) 17. b) 20. c) 21. d) 23. e) none of the above.
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