Question: The following questions involve inventory management using the demand data in the table below for 14 weeks (weeks 12-25 for the year) for one product.
The following questions involve inventory management using the demand data in the table below for 14 weeks (weeks 12-25 for the year) for one product.
| week | demand | Inventory (210 at end of week 11) |
| 12 | 50 |
|
| 13 | 30 |
|
| 14 | 30 |
|
| 15 | 40 |
|
| 16 | 50 |
|
| 17 | 40 |
|
| 18 | 30 |
|
| 19 | 30 |
|
| 20 | 50 |
|
| 21 | 40 |
|
| 22 | 30 |
|
| 23 | 30 |
|
| 24 | 30 |
|
| 25 | 40 |
|
Suppose inventory is managed with a periodic review system where orders are placed every 5 weeks and R = 300 units. The previous order was at the end of week 10 and the order amount was 100 units. The lead time is a constant 3 weeks. At the beginning of week 12 the inventory level is 210 units. Orders are made at the end of a week. Fill in the empty column in the table above with the inventory level at the end of each week; then answer the following:
(3 pts.) a) When is the next order? end of week ________
(4 pts.) b) How large is the next order? ____________
(3 pts.) c) When is the next order (after the one in part a)? end of week ________
(4 pts.) d) How large is this next order? _____________
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