Question: Consider the sawtooth diagram below, which illustrates the inventory issues associated with SKU 0153, a bag of 24-roll toilet paper, produced by the local GreenPaper
Consider the sawtooth diagram below, which illustrates the inventory issues associated with SKU 0153, a bag of 24-roll toilet paper, produced by the local GreenPaper company, over the last 45 days. GreenPaper can produce SKU 0153 at a rate of 10 bags a day, while demand of SKU 0153 is 4 bags per day. Answer the following questions, based on this sawtooth diagram.
Bags of Toilet Paper 0 10 10 20 30 40 Days
How many days does a single production of SKU 0153 last?
GreenPaper uses the order size (Q) that minimizes its combined holding and ordering costs, what should be the order size? (How many bags)
How long is the product run? (How many days)
What is the maximum inventory level of SKU 0153? (How many bags)
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