• 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