The Georgia Lighting Center stocks more than 3,000 lighting fixtures, including chandeliers, swags, wall lamps, and track lights. The store sells at retail, operates 6 days per week, and advertises itself as the "brightest spot in town.° One expensive fixture is selling at an average rate of 5 units per day. The reorder policy is Q = 40 and R = 15. A new order is placed on the day the reorder point is reached. The lead time is 3 business days. For example, an order placed on Monday will be delivered on Thursday. Simulate the performance of this Q system for the next 3 weeks (18 work days). Any stock-outs result in lost sales (rather than backorders). The beginning inventory is 19 units, and no receipts are scheduled. Table simulates the first week of operation. Extend Table to simulate operations for the next 2 weeks if demand for the next 12 business days is 7,4, 2, 7, 3, 6, 10, 0, 5,10, 4, and 7.
a. What is the average daily ending inventory over the 18 days? How many stock-outs occurred?
b. Using the same beginning inventory and daily demand data, simulate the inventory performance of the same item assuming a Q = 30, R = 20 system is used. Calculate the average inventory level and number of stock-outs and compare with part (a).
Table first week of operation

Transcribed Image Text:

Inventory Order Beginning Orders Daily Ending Workday Received Demand Inventory Position inventory Quantity 1. Monday 19 5 14 14 40 2. Tuesday 14 11 3. 11 4 47 Wednesday 4. Thursday 40 46 46 5. Friday 46 10 36 36 6. Saturday 36 27 27 51 3.