Question: A small bakery and candy maker has orders for the next 6 weeks and from them can estimate his sugar consumption for each week. Beginning
A small bakery and candy maker has orders for the next 6 weeks and from them can estimate his sugar consumption for each week. Beginning inventory is 30 units. The demand pattern is as follows:
Week 1 2 3 Gross requirements Week 50 4 10 5 60 6 Gross requirements 20 0 80 2 Period Demand O Order Quantity Cumulative Variable Cost Before Cost Ordering Cost Inventory Cost Total Cost 15 35 15 10 35 0 35 10 10 0 0 5 10 0 O D 15 15 35 35 35 45

The cost of getting the sugar from the warehouse in his van is $10 a time. The storage cost (holding) is 50 cents per kilogram per week. The price of the sugar is $1 per kilogram. Determine the order si algorithm.

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