QUESTION $1(25$ POINTS$)$

In the following production schedule, how many units should we manufacture per week

$($constant production rate$)$ in order to have $5$ units in stock at the end of week $5?$

We assume that any order released in a given week is received in this same week.

Note: constant production rate $=$ same order size in all weeks.

QUESTION $2(25$ POINTS$)$

The figure shows the stock profile of product $E.$ What is the inventory cost over the first $12$

months?

Data:

Monthly inventory holding rate $=15\%$

Unit cost of product $E=20$