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A production company A, made JITD strategic alliance with a distribution company B. The content of alliance is, Company A executes work for company Bs

A production company A, made JITD strategic alliance with a distribution company B. The content of alliance is, Company A executes work for company Bs inventory management and all the inventory cost caused from B is responsible on A. The decision for inventory replenishment is made on every Saturday, An order quantity is arrived every Sunday night after the delivery-process from A to B. The amount of starting inventory is 50 at Week 0 Inventory holding cost: 1,000 won/week per unit When the shortage is incurred, it is considered as Lost-sale, not as Backorder. Lost-sale cost : 2,000 won/week per unit. Inventory replenishment happens when the inventory level is under 20(not including 20th), and the amount of inventory to be refilled is calculated as 50-current inventory level. Transportation cost: 50,000 won per every delivery If the total number of satisfied demand - the total number of Lost-sale is greater than 110(not including 110th), the incentive, 20,000 won per extra unit is given to A. Following table shows weekly demand of B company for last 8 weeks. Please answer based on the information given above. All the cost is calculated from week 1(not from week 0). Week 0 1 2 3 4 5 6 7 8 Total Weekly demand 15 20 10 15 30 20 5 35 150 Satisfied demand Inventory level at the end of Week 50 Holding cost Shortage cost The amount of Inventory to be replenished Transportation cost (1) How much inventory does company A replenish for the first time? (2) How many times does company A replenish inventory for 8 weeks? (3) How many times does company B experience inventory shortage for 8 weeks? (4) How many demands of company B were met for 8 weeks among 150? (5) How much does company A have to pay for total shortage cost for 8 weeks? (6) Company A would experience (More profit or Loss of profit), and the difference between the total expense and the total incentive would be _______________ won. [Note: Total expense of company A = holding cost+ shortage cost+ transportation cost. If the total expense is lower than the total incentive company A would receive, we consider More profit. Otherwise we consider it as Loss of profit]

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