Question: Key constraints: There's a one - week delay between your customer sending an order and you receiving it . Similarly, there's a one - week

Key constraints:
There's a one-week delay between your customer sending an order and you receiving it. Similarly, there's a one-week delay between you sending an order to your supplier and them receiving it.
Inventory holding cost is 0.5 per unit per week, and backorder cost is 1 per unit per week. Backorder implies that you can't fulfil the demand due to a lack of inventory but have promised to ship it as soon as you have stock. In turn, you pay a penalty - in effect, it's not a 'lost sale' but a contractual penalty for delay.
Only your customer's demand is visible to you, and only your supplier can see your demand. Your 'customer' & 'supplier' would depend on your position in the supply chain.
The demand from the 'end customer' stays flat and jumps up/down at times. Unfortunately, you don't know what the future holds :(
You aim to keep your cost in control and contribute to keeping the overall supply chain cost in control.

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