a)

b)

c)

The "expected yearly demand" is an estimate of the demand over the next year for the tree. The "std dev" is the standard deviation, a measure of the error, that corresponds to the forecast. For-sale and in-field quantities are given, and finally the total number of trees planted on the farm. The demand forecast and quantities are updated on an ongoing basis as trees are sold and planted on the farm. Assume that it takes 1/2 year to obtain the starter "twigs" and plant a batch of trees, and another 21/2 years to grow the trees. How many rrees should management consider a minimum level (a reorder point) that would trigger starting the cycle to grow a type of tree? In answering this question, assume that management wants to have a 90 percent service probability while going through each planting cycle. Answer this question relative to the number of trees and years-of-supply for the trees. Management does not use an economic criterion, like EOQ, to determine planting quantity. Rather, they have stated that they want to plant a minimum of a year's worth of high-volume and two years' worth of low volume trees at a time. The idea is to order the year's supply target plus an amount needed to make up the difference between the minimum and current inventory position. For those tree types that are below the minimum level (calculated in part 2), calculate a proposed planting quantity. Create an additional column in the table for the proposed planting quantity. Suggest a process for how you think management should use the new ordering information you have created in the first three parts of this exercise. Issues related to how often this decision should be considered, and how the planting quantity might be adjusted, should be considered in your process. Also, what additional criteria should be considered in making these decisions