You need to complete the model and run a simulation of the inventory system for ONLY 10
Question:
You need to complete the model and run a simulation of the inventory system for ONLY 10 weeks. For this simulation you are to ALLOW FOR BACKORDERS (this means you need to allow for a negative ending inventory). If you have a negative ending inventory you will not have any carring cost but you will have a shortage cost. To compute the shortage cost multiple the number of units short by the per unit shortage cost of $50. For instance if your ending inventory is -3, the shortage cost would be $150. The beginning inventory of the next period should also be negative if the previous period had a shortage. The leadtime for shipments is a constant 2 weeks.
Answer the following questions for this 10 week simulation:
Maximum Inventory during the 10 weeks ________
Total number of orders in the 10 weeks ________
Average weekly cost over the 10 weeks _______________
Change the reorder point from 15 to 20. What is the average weekly inventory cost now? _______________
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman