A small bakery and candy maker has orders for the next 6 weeks and from them can estimate his sugar comsumption for each week. Beginning inventory is 30 units. The demand is as follows:

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 sizes by the Silver-Meal algorithm.

Week Gross requirements 1 50 2 10 3 60 Week 4 5 6 Gross requirements 20 0 80 Period Demand Order Quantity Cumulative Variable Cost Before Cost Ordering Cont Inventory Cost Total Cost 1 0 10 5 15 2 15 0 0 15 15 10 10 35 4 35 0 0 35 5 35 0 0 35 35 10 0 45