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a ) ( 1 0 marks ) Draw the inventory level of the following cases. CGHL orders 5 0 cases of yogurt whenever there are

a)(10 marks) Draw the inventory level of the following cases.
CGHL orders 50 cases of yogurt whenever there are only 10 cases left in stock. CGHL can receive their order after 5 days.
CGHL orders ice cream every Monday. The freezer can store 10 boxes per time but CGHL orders up to only 80% of freezer capacity to lengthen its lifespan.
CGHL receives 100 liter of fresh milk every day. Milk unsold at the end of the day is discounted for the yogurt supplier.
b)(10 marks) Safety stock of yogurt, ice cream, fresh milk is 5 cases, 5 boxes and 0 liter respectively. Calculate the average inventory level and maximum inventory level.
c)(10 marks) Based on the data and forecast below, advice whether CGHLs current milk inventory policy is optimal.
Ordering cost
$50/ order
Demand (bottles per day)
Probability
Transportation cost
$100/ shipment
190
0.25
Unit Cost
$10/ liter
200
0.35
Retail price
$20/ bottle of 500ml
210
0.25
Salvage value
$3/ liter unsold
220
0.15

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