Question: Teremana Tequila is making an inventory plan for 2022 considering its nascency. In 2022, TT will strive to maintain a 97% service level in order

Teremana Tequila is making an inventory plan for 2022 considering its nascency. In 2022, TT will strive to maintain a 97% service level in order to attract more customers. 2020 and 2021 demand data are available and Teremana Tequila has developed a forecast for the year 2022 (see table above). Answer the following questions:

a) Develop an inventory plan for TT for 2022 (hint: compute the order quantity using the information provided in the problem statement).

b) Calculate the ROP and the total inventory costs for 2022.

c) Discuss/Analyze the inventory behavior with the above plan [from a) and b)], comparing it to previous years. What do you observe?

d) What are your recommendations for TT considering the data and the computed inventory plan, ROP, and costs?

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