Question: Problem 4 (10 points): You are making a product with two components. Lead times of components 1 and 2 are L1 = 1 and L2

Problem 4 (10 points): You are making a product

Problem 4 (10 points): You are making a product with two components. Lead times of components 1 and 2 are L1 = 1 and L2 = 4 respectively. Demands usually stay at a constant level of 2 units a day, so your replenishment policy is straightforward, ordering each component 2 units a day, using component 1 ordered yesterday and component 2 ordered 4 days ago to build two products each day. Suppose there is a sudden surge of today's demand. Instead of 2 units, sales rises to 4 units. You have to backlog the extra 2 units of demands until they are served. This surge is a one-time event that you do not expect to happen anytime in near future. Question: 1. (5 points) what adjustments should you make to your ordering decisions today and in the next few days? 2. (5 points) If the aforementioned one-time event is not that you get two extra units of demand, but that you lose one unit (i.e., you receive one unit of demand today), how should your ordering decisions be adjusted

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