The Georgia Lighting Center stocks more than 3,000 lighting fixtures, including chandeliers, swags, wall lamps, and track lights. The store sells at retail, operates 6 days per week, and advertises itself as the brightest spot in town. One expensive fixture is selling at an average rate of 5 units per day. The reorder policy is Q=40 and R=15. A new order is placed on the day the reorder point is reached. The lead time is 3 business days. For example, an order placed on Monday will be delivered on Thursday. Simulate the performance of this Q system for the next 3 weeks (18 workdays). Any stockouts result in lost sales (rather than backorders). The beginning inventory is 19 units, and no receipts are scheduled. Table 1 simulates the first week of operation. Fill the table to simulate operations for the next 2 weeks.

A. What is the average daily ending inventory over the 18 days? How many stockouts occurred?

B. Using the same beginning inventory and daily demand data, simulate the inventory performance of the same item and prepare the table, assuming a Q=30, R=20 system is used. Calculate the average inventory level and the number of stockouts and compare them with part (A).

Day	Beginning Inventory	Open Orders Received	Daily Demand	Ending Inventory	Inventory Position	Amount Received
1	19	0	5	14	14	40
2	14	0	3	11	51
3	11	0	4	7	47
4	7	40	1	46	46
5	46	0	10	36	36
Sat 6	36	0	9	27	27
--------	--------------------------	------------------------------	------------------	----------------------	-----------------------	-----------------------
Mon 7			7
8			4
9			2
10			7
11			3
12			6
13			10
14			0
15			5
16			10
17			4
18			7

Total .......

Average .......

a. The average ending inventory is: ........stockouts occurred during any of the three cycles.

b. Assuming a Q=30, R= 20 system is used, the following simulation results:

Day	Beginning Inventory	Open Orders Received	Daily Demand	Ending Inventory	Inventory Position	Amount Received
1	19		5
2			3
3			4
4			1
5			10
Sat 6			9
--------	--------------------------	------------------------------	------------------	----------------------	-----------------------	-----------------------
Mon 7			7
8			4
9			2
10			7
11			3
12			6
13			10
14			0
15			5
16			10
17			4
18			7

Total .......

Average .......

The average level of ending inventory is ........ units and ........ stockouts occur.