Question
A medical store sells the wheelchairs from Wheelies. Orders are placed weekly to the Wheelies distributor and the lead-time to receive an order is 2
A medical store sells the wheelchairs from Wheelies. Orders are placed weekly to the Wheelies distributor and the lead-time to receive an order is 2 weeks. If there are some wheelchairs in stock when a customer comes to the store, he or she buys it on the spot. If not, the customer pays for it in full, then is invited to put his or her name on a waitlist. Upon receiving a shipment from the distributor, the store employee first sets aside a number of wheelchairs equal to the number of names on the waitlist and notifies the customers on the waitlist that their wheelchair is ready for pickup. After these wheelchairs have been put aside, the rest of the shipment is put on the shelves inside the store. Assume that every customer who wants a wheelchair is willing to wait for it if it is not in stock and none of them cancels their purchase before receiving it. The discrete demand is in the table below.
A. Assume that this order-up-to scenario has a l=3 and S=50. Fill in the blanks for week 5 and beyond. Ignore the blanks for weeks 1-4.
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | ||
Inventory Level | |||||||||
On-hand Inventory | |||||||||
Backorders | |||||||||
On-Order-Inventory | 40 | ||||||||
Inventory Position | |||||||||
Order Quantity | |||||||||
Orders Received | 12 | ||||||||
Demand | 12 | 12 | 16 | 19 | 15 | 21 | 8 | 10 |
B. By looking at the inventories and the backorders, what can you tell me about S? Should we make it larger, smaller, or keep it the same?
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