You must make a decision about purchasing an article in your supplier. Demand in your firm for this supply changes in periods (months), but is known (Table 1 below). There are the following cost elements: ordering cost is c_o = 114, unit price in purchasing is P = 15, period inventory holding cost rate is r = 8% of price. According to the order the supply increases inventory nearly immediately (without a delay at the beginning of the period) and it should allow fulfilling a demand of this period. Initial inventory is 0. Determine plan of period orders in your supplier. First calculate a critical (break-even) point Q* for ordering. Hint: Wagner-Whitin dynamic model.

Q* = ... Table 1. Demand, inventory levels, orders and total cost Initial Inventory Orders Final Inventory Period no. Demand Period Total Cost 1 70 2 45 3 20 4 60 Total cost Calculations: ... Q* = ... Table 1. Demand, inventory levels, orders and total cost Initial Inventory Orders Final Inventory Period no. Demand Period Total Cost 1 70 2 45 3 20 4 60 Total cost Calculations