Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the forecast in the second image are from previous question Using the given data, the forecasts you have obtained from Q5, and with the following

image text in transcribedimage text in transcribed

the forecast in the second image are from previous question

Using the given data, the forecasts you have obtained from Q5, and with the following assumptions: the initial inventory is set to be 25000; for promotional purposes: addition of 20% on top of the forecasted demand is needed; the lead time is two months; for any month t, virtual inventory (of month t) is set to be inventory on hand (of month t) plus the number of units that have been ordered but have not yet arrived; for any month t, inventory required (of month t) is set to be the forecasted demand plus the extra 20% (of months t, t+ and t + 2); the inventory is checked at the beginning of the month and if the virtual inven- tory is less than the inventory required then an order is placed; if an order is placed, then the order quantity is the difference between inventory required and virtual inventory; each order is received at the beginning of a month; costs are ignored. For months March 2011 to July 2012, determine whether Chinese Pharmaceuticals needs to place an order or not. If an order is placed, how much should be ordered? Input Data MM-YY Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Period 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Actual sales Forecast 7,326 7326 6,207 6286 5,976 6198 5,874 6013 5,970 6170 6,666 6238 7,575 7142 8,367 8198 9,051 10486 9,696 9287 9,594 9264 9,084 9139 8,955 9343 8,235 7791 8,055 7844 7,767 7815 Next Period 36 8088 Using the given data, the forecasts you have obtained from Q5, and with the following assumptions: the initial inventory is set to be 25000; for promotional purposes: addition of 20% on top of the forecasted demand is needed; the lead time is two months; for any month t, virtual inventory (of month t) is set to be inventory on hand (of month t) plus the number of units that have been ordered but have not yet arrived; for any month t, inventory required (of month t) is set to be the forecasted demand plus the extra 20% (of months t, t+ and t + 2); the inventory is checked at the beginning of the month and if the virtual inven- tory is less than the inventory required then an order is placed; if an order is placed, then the order quantity is the difference between inventory required and virtual inventory; each order is received at the beginning of a month; costs are ignored. For months March 2011 to July 2012, determine whether Chinese Pharmaceuticals needs to place an order or not. If an order is placed, how much should be ordered? Input Data MM-YY Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Period 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Actual sales Forecast 7,326 7326 6,207 6286 5,976 6198 5,874 6013 5,970 6170 6,666 6238 7,575 7142 8,367 8198 9,051 10486 9,696 9287 9,594 9264 9,084 9139 8,955 9343 8,235 7791 8,055 7844 7,767 7815 Next Period 36 8088

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions