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 1 represents the demand for baseball caps for the next 10 months of Kleid Store. The owner expects $121 to place an order to buy a baseball cap for $8 each, which also needs
$0.87 per month to manage the holding cost.
a. Complete the table to minimize the total cost of the inventory system.
Table 1
Month: Jan. Feb. Mar. Apr. May Jun. Jul. Agu. Sep. Oct.
Demand: 459040150100130115908030
Order Quantity:
Ending Inventory:
(Imagine this is an excel sheet/table and January's demand is 45 and October's demand is 30, 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?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!