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This problem deals with stochastic demands in multiple periods. Here is the demand information: Day 1 2 3 4 5 6 7 8 9 Demand

This problem deals with stochastic demands in multiple periods. Here is the demand information:

Day 1 2 3 4 5 6 7 8 9
Demand 2 2 5 4 1 3 3 2 1

The initial inventory is 6. The lead time is 3 days. We will receive what we ordered at the end of the day.

If we are using (s, Q) policy with s=2 and Q=5. Which of the following statement is not true?

A.

The net inventory on day 3 is -3.

B.

The order quantity on day 6 is 0.

C.

The order quantity on day 5 is 0.

D.

The inventory position on day 9 is 3.

Continue on Q6, if we change the policy to (s, S) with s=3 and S=6. Which of the following statement is not true?

A.

The order quantity on day 9 is 3.

B.

The inventory position on day 3 is 1.

C.

The order quantity on day 5 is 4.

D.

The net inventory on day 7 is -5.

Continue on to Q6, if we change the policy to (R, S) with R=4 and S=10. Which of the following statement is not true?

A.

The order quantity on day 4 is 10.

B.

The inventory position on day 5 is 9.

C.

The net inventory on day 7 is -14.

D.

The order quantity on day 9 is 0.

Finally, if we change the policy to (R, s, S) with R=3, s=2, and S=6. Which of the following statement is not true?

A.

The net inventory on day 7 is -5.

B.

The order quantity on day 6 is 0.

C.

The order quantity on day 9 is 6.

D.

The inventory position on day 5 is 1.

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