Suppose that a customer for Product $x$ wants three additional units for their order scheduled for

week $4.$ What would you tell them? Specifically, if you cannot promise them the three units for week

$4,$ what is the best that you can do given the information you have. Assume that adequate capacity

exists in all the production equipment.

The customer described in question $3$ decides against placing the order for the extra units in week

$4,$ but shortly thereafter you are informed that someone in the warehouse dropped a box of

component $C$ and broke $20$ of them. They had to be scrapped. Describe the consequences and a plan

of action to deal with the problem. Assume the lead time for component $C$ is a firm $2$ weeks.

It is clear that the company has set the safety stock $($planning for extra material "just in case"

something goes wrong$)$ level for components at zero in order to minimize their inventory during the

slow season. Discuss this policy, pointing out the pros and cons of such a policy. Develop what you

might suggest as a policy for safety stock given the information available in the case.