Question: A single inventory item is ordered from an outside supplier. The anticipated demand for this item over the next 12 months is 6, 12, 4,

A single inventory item is ordered from an outside supplier. The anticipated demand for this item over the next 12 months is 6, 12, 4, 8, 15, 25, 20, 5, 10, 20, 5, 12. Current inventory of this item is 4, and ending inventory should be 8. Assume a holding cost of $1 per period and a setup cost of $40, and a maximum order size of 20 per month. Determine the order policy for this item based on:

a. SilverMeal. b. Least unit cost. c. Part period balancing. d. Which lot-sizing method resulted in the lowest cost for the 12 periods?

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