Question: What is TJs purchasing plan? What should TJ do to ensure a smooth operation of his shop? Junk. One of the items that TJ sells

  1. What is TJs purchasing plan?

  2. What should TJ do to ensure a smooth operation of his shop?What is TJs purchasing plan? What should TJ do to

Junk." One of the items that TJ sells is a tablecloth. This is a very "special" tablecloth that was originally made by an aboriginal weaver, Wanga Bunga, on the island. TJ sells an average of 240 tablecloths each week, and his shop is open 52 weeks per year. The monthly sales are given below in a table. The standard deviation of weekly demand is 40 units. Since TJ must order and ship his tablecloths from the mainland, it costs him a total of $200. It takes two weeks for an order to arrive at his island shop. TJ estimates that it costs him $2 to keep a tablecloth in inventory for an entire year. He likes to maintain a customer service level of 95%. Month 1 2 3 4 5 6 7 8 9 10 11 12 Total Forecast 1040 1100 1040 940 1040 1040 1040 1200 1040 1040 920 1040 12480 Recently, a representative of a different mainland textile mill offered TJ a new tablecloth supply option. The representative offered to contact T) on once every four weeks. TJ could then place an order, which would arrive two weeks later. So, now TJ must consider his two options for maintaining tablecloth inventory at his shop. A. His aboriginal weaver, Wanga Bunga wants to maintain a steady production rate for the 12 months. Wanga produces at a steady state regular production that costs him 60 Dengas apiece. By the way, Dengas is the local currency. Wanga's average inventory cost per month is a mere 5 Dengas apiece and his backorder rate is 90 Dengas apiece per month and if he wishes to do overtime he will ask

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