ESTABLISHING THE CURRENT INVENTORY PLAN (25 points) Question No. 1. - What average inventory for each part number in pieces and dollars should the company have with current ordering practices (lot-size inventory) and planned buffer stock levels ? How much total average planned inventory should the company have on these three, part numbers? Fill in missing figures in table to calculate. PART NO. 1A1 PART NO. CCC PART NO. 2B2 Unit Price $ 500 $ 25 $ 1800 Order Qty ( Weekly Requirements) in Pieces 17,500 ? ? Average Inventory in Pieces (17,500/2) = 8,750 ? ? Average Inventory in Dollars (8,750 X $ 500) = $ 4,375,000 ? ? Current Planned Safety Stock in Pieces 1000 pcs 60,000 pcs 1,000 pcs Current Planned Safety Stock in Dollars (1000 x $ 500) = $ 500,000 ? ? Average Planned Inventory in Pieces 9,750 pcs ? ? Average Planned Inventory in Dollars ($ 4.375K + $ 500 K) = $ 4.875 K ? ? Tips For this study case consider the Average Inventory = Order Quantity/2 (could be in pieces or dollars) Total Avg. Planned Inventory (Pcs). Average Planned Inventory = Average Inventory + Safety Stock (could be in pieces or dollars) Total Avg. Planned Inventory ($). Total Average Planned Inventory in dollars = ($) Avg. Inv. Part 1A1+ ($) Avg. Inv. Part CCC + ($) Avg. Inv. Part 2B2