Question: 6 . ( 1 5 points ) Use the model I have set up for you on the Q 6 Simulation tab in the Excel
points Use the model I have set up for you on the Q Simulation tab in the Excel file you received via email. You need to complete the model and run a simulation of the inventory system for ONLY weeks. For this simulation you are to ALLOW FOR BACKORDERS this means you need to allow for a negative ending inventory If you have a negative ending inventory you will not have any carrying cost, but you will have a shortage cost. To compute the shortage cost multiple the number of units short by the per unit shortage cost of $ For instance, if your ending inventory is the shortage cost would be $ The beginning inventory of the next period should also be negative if the previous period had a shortage. The leadtime for shipments is a constant weeks.
Answer the following questions for this week simulation:
Maximum Inventory during the weeks
Total number of orders in the weeks
Average weekly cost over the weeks
Change the reorder point from to What is the average weekly inventory cost now?
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