The inventory level at the end of each week can be calculated as follows: Week Demand Inventory
Question:
The inventory level at the end of each week can be calculated as follows:
Week | Demand | Inventory | Order Placed | Order Received |
---|---|---|---|---|
12 | 60 | 350 | No | N/A |
13 | 30 | 320 | No | N/A |
14 | 50 | 320 | No | N/A |
15 | 60 | 350 | No | N/A |
16 | 70 | 410 | Yes | Week 18 |
17 | 50 | 380 | No | N/A |
18 | 60 | 410 | No | N/A |
19 | 50 | 380 | No | N/A |
20 | 30 | 350 | No | N/A |
21 | 40 | 310 | Yes | Week 23 |
22 | 50 | 280 | No | N/A |
23 | 30 | 250 | No | N/A |
24 | 30 | 220 | Yes | Week 26 |
25 | 40 | 240 | No | N/A |
The next order is made at the end of week
The reorder point R is 240 units and the current inventory level at the end of week 14 is 320 units. Therefore, an order needs to be placed at the end of week 14 to bring the inventory level back up to the reorder point. The next order is made at the end of week 14.
Looking at your solutions why there is answer that new order has been placed at the end of week 14 and in table it does not show that has been order places. Instead it has been placed at week 16.
also when would you show when order has been received from week 9 order?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill