Question: Table 1 represents the demand for baseball caps for the next 1 0 months of Kleid Store. The owner expects $ 1 2 1 to
Table represents the demand for baseball caps for the next months of Kleid Store. The owner expects $ to place an order to buy a baseball cap for $ each, which also needs
$ per month to manage the holding cost.
a Complete the table to minimize the total cost of the inventory system.
Table
Month: Jan. Feb. Mar. Apr. May Jun. Jul. Agu. Sep. Oct.
Demand:
Order Quantity:
Ending Inventory:
Imagine this is an excel sheettable and January's demand is and October's demand is we need to find the missing values of Order Quantity and Ending Inventory
b What are the ordering and holding costs?
c The current policy is to place order every odd month to cover the demand of that month and the next. Calculate the ordering cost and holding cost of the current policy. Do you recommend that the owner change the current policy?
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