Question: The buffer stock requirement in our simulation was to maintain an ending inventory count equal to 3 x ( Daily Demand ) . Suppose we

The buffer stock requirement in our simulation was to maintain an ending inventory count equal to 3 x (Daily Demand).
Suppose we had assumed instead that the buffer stock requirement was to always maintain an ending inventory count of 12 units, even if demand increased. (See the table below the questions on this page.)
1. How much would Rita have ordered on Day 6 if the buffer stock requirement on Day 9 was 12 instead of 24?
O(6)= Answer 1 Question 8
units
2. With a buffer stock requirement of 12 instead of 24 on Day 9, how much would Rita amplify a 4 unit increase in the market demand?
Rita would amplify the 4 unit increase in the market demand by Answer 2 Question 8
units
3. A retailer will always amplify an increase in the market demand even if the buffer stock requirement does not increase when demand increases. Answer 3 Question 8
Day 6
Day 7
Day 8
Day 9
Inc.
Ship.
Beg.
Inv. Count
Demand
Sales
Ending
Inv. Count
Inc.
Ship.
Beg.
Inv. Count
Demand
Sales
Ending
Inv. Count
Inc.
Ship.
Beg.
Inv. Count
Demand Sales
Ending
Inv. Count
Inc.
Ship.
Beg.
Inv. Count
Demand Sales Ending Inv. Count
4
12
8
8
8
4
8
8
0
888808
How mcuh? Answer 4 Question 8

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