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After building a scientific way for demand forecasting, Mary hoped Jason can propose the optimal inventory/ordering policies for these 4 products for the first week

After building a scientific way for demand forecasting, Mary hoped Jason can propose the optimal inventory/ordering policies for these 4 products for the first week of 2022. The sale price/unit for each product is listed below:

Product W Product X Product Y Product Z

$220 $50 $5 $3

Jason decided to use ABC rule to classify these 4 products. 'A' category product(s) will have the target service level of 95%. 'B' product(s) will have the target service level 90% and 'C' products(s) will have the target service level 85%. After setting the appropriate service level, Jason will use the service level information to calculate the safety stock level for each product.

How should Jason classify the ABC products? (10 points)

After classifying these 4 products, Jason wanted to use the ROP model for inventory/ordering management. He believed he would get an accurate demand forecasting for the first week of 2022. But based on the historical data. The attached spreadsheet document includes the order information for 2021. The company places the order of all products on each Wednesday. Jason found the lead time of orders has variations for all these 4 products. Which ROP model should Jason implement? (5 points)

What are the reorder points for each of these 4 products for the first week of 2022? (30 points) Date of Receiving Order

Date of Receiving Order

Week Date of Placing Order Product W Product X Product Y Product Z

1 1/6/2021 1/9/2021 1/9/2021 1/8/2021 1/8/2021

2 1/13/2021 1/19/2021 1/15/2021 1/15/2021 1/15/2021

3 1/20/2021 1/21/2021 1/23/2021 1/20/2021 1/21/2021

4 1/27/2021 1/29/2021 1/29/2021 1/28/2021 1/28/2021

5 2/3/2021 2/9/2021 2/6/2021 2/3/2021 2/4/2021

6 2/10/2021 2/15/2021 2/14/2021 2/12/2021 2/12/2021

7 2/17/2021 2/21/2021 2/21/2021 2/17/2021 2/17/2021

8 2/24/2021 2/28/2021 2/27/2021 2/27/2021 2/27/2021

9 3/2/2021 3/6/2021 3/4/2021 3/3/2021 3/3/2021

10 3/9/2021 3/14/2021 3/12/2021 3/11/2021 3/12/2021

11 3/16/2021 3/19/2021 3/18/2021 3/18/2021 3/18/2021

12 3/23/2021 3/29/2021 3/26/2021 3/24/2021 3/24/2021

13 3/30/2021 4/5/2021 4/2/2021 3/31/2021 3/31/2021

14 4/6/2021 4/11/2021 4/8/2021 4/7/2021 4/7/2021

15 4/13/2021 4/18/2021 4/16/2021 4/14/2021 4/13/2021

16 4/20/2021 4/25/2021 4/23/2021 4/20/2021 4/20/2021

17 4/27/2021 4/30/2021 4/29/2021 4/28/2021 4/28/2021

18 5/4/2021 5/8/2021 5/6/2021 5/6/2021 5/6/2021

19 5/11/2021 5/14/2021 5/16/2021 5/11/2021 5/11/2021

20 5/18/2021 5/22/2021 5/21/2021 5/18/2021 5/18/2021

21 5/25/2021 5/31/2021 5/30/2021 5/27/2021 5/27/2021

22 6/1/2021 6/4/2021 6/3/2021 6/4/2021 6/5/2021

23 6/8/2021 6/14/2021 6/12/2021 6/9/2021 6/9/2021

24 6/15/2021 6/20/2021 6/19/2021 6/16/2021 6/16/2021

25 6/22/2021 6/26/2021 6/24/2021 6/24/2021 6/24/2021

26 6/29/2021 7/4/2021 7/3/2021 6/30/2021 6/30/2021

27 7/6/2021 7/13/2021 7/8/2021 7/6/2021 7/6/2021

28 7/13/2021 7/16/2021 7/14/2021 7/15/2021 7/15/2021

29 7/20/2021 7/22/2021 7/22/2021 7/21/2021 7/21/2021

30 7/27/2021 7/30/2021 7/29/2021 7/28/2021 7/27/2021

31 8/3/2021 8/11/2021 8/5/2021 8/5/2021 8/5/2021

32 8/10/2021 8/16/2021 8/13/2021 8/12/2021 8/12/2021

33 8/17/2021 8/20/2021 8/19/2021 8/18/2021 8/18/2021

34 8/24/2021 8/29/2021 8/26/2021 8/26/2021 8/26/2021

35 8/31/2021 9/7/2021 9/4/2021 9/2/2021 9/2/2021

36 9/7/2021 9/12/2021 9/11/2021 9/8/2021 9/8/2021

37 9/14/2021 9/21/2021 9/17/2021 9/15/2021 9/15/2021

38 9/21/2021 9/26/2021 9/23/2021 9/22/2021 9/22/2021

39 9/28/2021 10/1/2021 10/2/2021 9/29/2021 9/29/2021

40 10/5/2021 10/11/2021 10/8/2021 10/5/2021 10/5/2021

41 10/12/2021 10/15/2021 10/16/2021 10/14/2021 10/14/2021

42 10/19/2021 10/25/2021 10/20/2021 10/21/2021 10/21/2021

43 10/26/2021 10/28/2021 10/28/2021 10/26/2021 10/26/2021

44 11/2/2021 11/7/2021 11/5/2021 11/2/2021 11/2/2021

45 11/9/2021 11/10/2021 11/11/2021 11/9/2021 11/9/2021

46 11/16/2021 11/22/2021 11/18/2021 11/18/2021 11/18/2021

47 11/23/2021 11/23/2021 11/26/2021 11/24/2021 11/24/2021

48 11/30/2021 12/4/2021 12/2/2021 12/2/2021 12/2/2021

49 12/7/2021 12/12/2021 12/10/2021 12/8/2021 12/8/2021

50 12/14/2021 12/16/2021 12/16/2021 12/15/2021 12/15/2021

51 12/21/2021 12/26/2021 12/24/2021 12/22/2021 12/22/2021

52 12/28/2021 12/31/2021 12/31/2021 12/30/2021 12/30/2021

Sales infromation of each product of 2021

Week 2021 Product W Product X Product Y Product Z

1 35 55 252 205

2 34 51 253 203

3 35 55 250 208

4 34 55 250 201

5 36 54 248 202

6 39 57 258 210

7 36 56 248 202

8 40 56 251 205

9 41 53 249 207

10 44 56 249 205

11 43 57 242 207

12 46 55 243 206

13 48 62 247 202

14 48 53 240 206

15 47 56 242 207

16 51 51 248 207

17 48 64 241 205

18 49 57 246 207

19 52 62 242 206

20 51 55 238 207

21 50 58 246 208

22 57 67 239 205

23 54 69 241 207

24 56 58 240 214

25 57 68 239 206

26 59 64 232 214

27 60 65 240 208

28 63 65 237 209

29 62 63 237 210

30 61 64 234 207

31 59 66 234 212

32 67 62 232 205

33 58 71 231 208

34 66 66 228 211

35 60 72 232 213

36 69 68 230 213

37 71 71 231 207

38 65 64 229 210

39 71 69 231 208

40 68 71 228 207

41 75 67 227 213

42 71 73 226 214

43 78 68 227 208

44 77 75 217 209

45 81 75 227 211

46 79 75 224 212

47 77 72 225 214

48 75 71 224 211

49 79 77 224 213

50 85 77 225 218

51 87 82 224 215

52 80 76 219 217

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Previous Question Next Question

		Date of Receiving Order
Week	Date of Placing Order	Product W	Product X	Product Y	Product Z
1	1/6/2021	1/9/2021	1/9/2021	1/8/2021	1/8/2021
2	1/13/2021	1/19/2021	1/15/2021	1/15/2021	1/15/2021
3	1/20/2021	1/21/2021	1/23/2021	1/20/2021	1/21/2021
4	1/27/2021	1/29/2021	1/29/2021	1/28/2021	1/28/2021
5	2/3/2021	2/9/2021	2/6/2021	2/3/2021	2/4/2021
6	2/10/2021	2/15/2021	2/14/2021	2/12/2021	2/12/2021
7	2/17/2021	2/21/2021	2/21/2021	2/17/2021	2/17/2021
8	2/24/2021	2/28/2021	2/27/2021	2/27/2021	2/27/2021
9	3/2/2021	3/6/2021	3/4/2021	3/3/2021	3/3/2021
10	3/9/2021	3/14/2021	3/12/2021	3/11/2021	3/12/2021
11	3/16/2021	3/19/2021	3/18/2021	3/18/2021	3/18/2021
12	3/23/2021	3/29/2021	3/26/2021	3/24/2021	3/24/2021
13	3/30/2021	4/5/2021	4/2/2021	3/31/2021	3/31/2021
14	4/6/2021	4/11/2021	4/8/2021	4/7/2021	4/7/2021
15	4/13/2021	4/18/2021	4/16/2021	4/14/2021	4/13/2021
16	4/20/2021	4/25/2021	4/23/2021	4/20/2021	4/20/2021
17	4/27/2021	4/30/2021	4/29/2021	4/28/2021	4/28/2021
18	5/4/2021	5/8/2021	5/6/2021	5/6/2021	5/6/2021
19	5/11/2021	5/14/2021	5/16/2021	5/11/2021	5/11/2021
20	5/18/2021	5/22/2021	5/21/2021	5/18/2021	5/18/2021
21	5/25/2021	5/31/2021	5/30/2021	5/27/2021	5/27/2021
22	6/1/2021	6/4/2021	6/3/2021	6/4/2021	6/5/2021
23	6/8/2021	6/14/2021	6/12/2021	6/9/2021	6/9/2021
24	6/15/2021	6/20/2021	6/19/2021	6/16/2021	6/16/2021
25	6/22/2021	6/26/2021	6/24/2021	6/24/2021	6/24/2021
26	6/29/2021	7/4/2021	7/3/2021	6/30/2021	6/30/2021
27	7/6/2021	7/13/2021	7/8/2021	7/6/2021	7/6/2021
28	7/13/2021	7/16/2021	7/14/2021	7/15/2021	7/15/2021
29	7/20/2021	7/22/2021	7/22/2021	7/21/2021	7/21/2021
30	7/27/2021	7/30/2021	7/29/2021	7/28/2021	7/27/2021
31	8/3/2021	8/11/2021	8/5/2021	8/5/2021	8/5/2021
32	8/10/2021	8/16/2021	8/13/2021	8/12/2021	8/12/2021
33	8/17/2021	8/20/2021	8/19/2021	8/18/2021	8/18/2021
34	8/24/2021	8/29/2021	8/26/2021	8/26/2021	8/26/2021
35	8/31/2021	9/7/2021	9/4/2021	9/2/2021	9/2/2021
36	9/7/2021	9/12/2021	9/11/2021	9/8/2021	9/8/2021
37	9/14/2021	9/21/2021	9/17/2021	9/15/2021	9/15/2021
38	9/21/2021	9/26/2021	9/23/2021	9/22/2021	9/22/2021
39	9/28/2021	10/1/2021	10/2/2021	9/29/2021	9/29/2021
40	10/5/2021	10/11/2021	10/8/2021	10/5/2021	10/5/2021
41	10/12/2021	10/15/2021	10/16/2021	10/14/2021	10/14/2021
42	10/19/2021	10/25/2021	10/20/2021	10/21/2021	10/21/2021
43	10/26/2021	10/28/2021	10/28/2021	10/26/2021	10/26/2021
44	11/2/2021	11/7/2021	11/5/2021	11/2/2021	11/2/2021
45	11/9/2021	11/10/2021	11/11/2021	11/9/2021	11/9/2021
46	11/16/2021	11/22/2021	11/18/2021	11/18/2021	11/18/2021
47	11/23/2021	11/23/2021	11/26/2021	11/24/2021	11/24/2021
48	11/30/2021	12/4/2021	12/2/2021	12/2/2021	12/2/2021
49	12/7/2021	12/12/2021	12/10/2021	12/8/2021	12/8/2021
50	12/14/2021	12/16/2021	12/16/2021	12/15/2021	12/15/2021
51	12/21/2021	12/26/2021	12/24/2021	12/22/2021	12/22/2021
52	12/28/2021	12/31/2021	12/31/2021	12/30/2021	12/30/2021

Sales infromation of each product of 2021
Week 2021	Product W	Product X	Product Y	Product Z
1	35	55	252	205
2	34	51	253	203
3	35	55	250	208
4	34	55	250	201
5	36	54	248	202
6	39	57	258	210
7	36	56	248	202
8	40	56	251	205
9	41	53	249	207
10	44	56	249	205
11	43	57	242	207
12	46	55	243	206
13	48	62	247	202
14	48	53	240	206
15	47	56	242	207
16	51	51	248	207
17	48	64	241	205
18	49	57	246	207
19	52	62	242	206
20	51	55	238	207
21	50	58	246	208
22	57	67	239	205
23	54	69	241	207
24	56	58	240	214
25	57	68	239	206
26	59	64	232	214
27	60	65	240	208
28	63	65	237	209
29	62	63	237	210
30	61	64	234	207
31	59	66	234	212
32	67	62	232	205
33	58	71	231	208
34	66	66	228	211
35	60	72	232	213
36	69	68	230	213
37	71	71	231	207
38	65	64	229	210
39	71	69	231	208
40	68	71	228	207
41	75	67	227	213
42	71	73	226	214
43	78	68	227	208
44	77	75	217	209
45	81	75	227	211
46	79	75	224	212
47	77	72	225	214
48	75	71	224	211
49	79	77	224	213
50	85	77	225	218
51	87	82	224	215
52	80	76	219	217