Problem 4:

A component used in a manufacturing facility is ordered from an outside supplier. The component is used in a variety of finished items and therefore the demand is high. Forecast demand (in thousands) over the next 8 weeks is:

Week	1	2	3	4	5
Demand	21	33	29	15	9

Each component costs 70 cents and the inventory carrying charge rate is 0.56 cents ($0.0056) per unit per week. The fixed order cost is $300. Assume instantaneous delivery.

What is the ordering policy recommended by DP algorithm?