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 | Gross Requirements | Week | Gross Requirements |
| 1 | 50 | 4 | 20 |
| 2 | 10 | 5 | 0 |
| 3 | 60 | 6 | 80 |
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. Provide the ordering schedule and cumulative variable costs in a table format just like seen in this module.
| Period | 1 | 2 | 3 | 4 | 5 | 6 |
| Demand | ||||||
| Order Qty | ||||||
| Cumulative variable Cost | ||||||
| Before Cost | ||||||
| Ordering Cost | ||||||
| Inventory Cost | ||||||
| Total Cost |

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