Suppose you are the retailer in the bear game. Your client is the customer, and your...

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Suppose you are the retailer in the bear game. Your client is the customer, and your supplier is the wholesaler. At each week, you need to place an order to your supplier, and fulfill the customer demand. The lead time is 2 weeks. You fully trust your demand forecasting model and use the forecasted demand to manage the inventory. For each unit of over-stocked product, the hold cost is $0.5; while the unit cost of the backlogging order is $1. Suppose the inventory maintained at the wholesaler side is always enough to fulfill your order. The demand forecasting model is given below: Week 1 Forecasted 4 Demand 2 4 36 46 580 69 8 7 10 8 10 9 12 lold (i) What will be the optimal order quantity placed at week 5, if you 100% trust the forecasted demand? Suppose you are the retailer in the bear game. Your client is the customer, and your supplier is the wholesaler. At each week, you need to place an order to your supplier, and fulfill the customer demand. The lead time is 2 weeks. You fully trust your demand forecasting model and use the forecasted demand to manage the inventory. For each unit of over-stocked product, the hold cost is $0.5; while the unit cost of the backlogging order is $1. Suppose the inventory maintained at the wholesaler side is always enough to fulfill your order. The demand forecasting model is given below: Week 1 Forecasted 4 Demand 2 4 36 46 580 69 8 7 10 8 10 9 12 lold (i) What will be the optimal order quantity placed at week 5, if you 100% trust the forecasted demand?

Answer rating: 100% (QA)

To determine the optimal order quantity placed at week 5 we need to use the Economic Order Quantity ... View the full answer