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Problem 3 (10 points): A product is made of one unit of each of the two components. Component A's lead time is LA = 1

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Problem 3 (10 points): A product is made of one unit of each of the two components. Component A's lead time is LA = 1 and component B's lead time is LB = 3. At the beginning of today, demand is backlogged by 10 units, you have 4 units of component A but no component B on hand. Question: 1. (5 points) If 4 units of component B are ordered the day before yesterday and 12 units are ordered yesterday, what is maximum number of units of component A you want to order today (set the number of units to zero if you decide not to order), and why? 2. (5 points) Suppose that the firm keeps the inventory position of component B at a constant level for all time. If demand arrival is 10 units the day before yesterday and 6 units yesterday. What is the maximum number of units of component A you want to order today, and why? Problem 3 (10 points): A product is made of one unit of each of the two components. Component A's lead time is LA = 1 and component B's lead time is LB = 3. At the beginning of today, demand is backlogged by 10 units, you have 4 units of component A but no component B on hand. Question: 1. (5 points) If 4 units of component B are ordered the day before yesterday and 12 units are ordered yesterday, what is maximum number of units of component A you want to order today (set the number of units to zero if you decide not to order), and why? 2. (5 points) Suppose that the firm keeps the inventory position of component B at a constant level for all time. If demand arrival is 10 units the day before yesterday and 6 units yesterday. What is the maximum number of units of component A you want to order today, and why

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