Question: Let us focus on Problem 3.2 in Chapter 8, and the effect of demand change from 100 to 110 in week 3 is re-examined under

Let us focus on Problem 3.2 in Chapter 8, and the

Let us focus on Problem 3.2 in Chapter 8, and the effect of demand change from 100 to 110 in week 3 is re-examined under the following assumptions. At the beginning of week 4, we assume that the manager wants to change only the safety stock value (SS) from 100 to 110. The expected demand rate per week remains 100. Thus, the target R becomes 100x(2+1) + 110 = 410 at the beginning of week 4. In week 5, the value of Ris reset to 400. Explain in detail the behavior of order quantity in weeks 4 to 7. Let us focus on Problem 3.2 in Chapter 8, and the effect of demand change from 100 to 110 in week 3 is re-examined under the following assumptions. At the beginning of week 4, we assume that the manager wants to change only the safety stock value (SS) from 100 to 110. The expected demand rate per week remains 100. Thus, the target R becomes 100x(2+1) + 110 = 410 at the beginning of week 4. In week 5, the value of Ris reset to 400. Explain in detail the behavior of order quantity in weeks 4 to 7

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