Question: 6 . ( 1 5 points ) Use the model I have set up for you on the Q 6 Simulation tab in the Excel

6.(15 points) Use the model I have set up for you on the Q6 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 10 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 $50. For instance, if your ending inventory is -3, the shortage cost would be $150. 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 2 weeks.
Answer the following questions for this 10-week simulation:
Maximum Inventory during the 10 weeks ________
Total number of orders in the 10 weeks ________
Average weekly cost over the 10 weeks _______________
Change the reorder point from 15 to 20. What is the average weekly inventory cost now? _______________

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