The attached spreadsheet contains demand data for ten weeks. You are to solve the following replenishment problem. Decide how much to order each week to minimize the total cost, which includes fixed charges for ordering and holding cost. If an order is made, there is a fixed charge paid for that order, regardless of the quantity. Inventory held at the end of the week incurs a holding cost per unit. There is a minimum amount of inventory that must be on hand each week. Currently the MOQ, the minimum amount that you must order if you place an order, is zero. Later variations of this problem will have a non-zero order quantity. The attached spreadsheet includes all of the data that you need as well as an example solution.

Fixed charge for orderings min order qty 100 Week Demand 0 1 2 3 4 3 Inventory Minimum held at Holding inventory Order end of cost per Fixed Holding requirement amount week unit charge cost 20 10 1 2 12 2 $ 100 $ 24 10 1 2 4 2 $ 100 $ 8 10 1 7 1 21 $ 100 $ 2 0 2 3 21 $ 100 $ 6 0 0 2 5 2 $ 100$ 10 15 1.5 11 1 21 $ 100$ 20 2 20 1 2 $ 100 $ 20 20 1 2 $ 100 $ 0 3 2 $ 100$ 6 10 1 8 1 2 $ 100 $ 2 Ole ON 4 NIN Uw 5 6 7 NINIP BloIPING 8 NNN N 9 9 0 2 3 10 TOTAL COST $ 1,064