To simulate inventory management for a particular product, assume that the per period demand is an integer value quantity which follows the normal distribution with mean and standard deviation 50 and 15, respectively. If the demand exceeds the starting inventory, then the ending inventory would be zero, that is, the "extra" demand is lost. Therefore, the ending inventory level is never negative. Ordering will take place at the end of the period, based on the ending inventory, and the order arrives at the beginning of the next period. The ordering policy is to order 80 units (order quantity is equal to 80 units) when the ending inventory is less than or equal to 30 units (reorder point is 30 units). The cost of placing each inventory order is fixed at $250, and this value does not depend on the quantity ordered. The cost of holding inventory for each period is $5 per unit (holding cost is $5/unit-period). The per period inventory holding cost is computed based on the end of period inventory level.The starting inventory for each period, after the first period, is the ending inventory plus any order quantity from the period before.

B C D E F G A Inventory Problem 50 units Total Inv Cost Mean Demand Demand Std Dev 15 units units per order Order Quantity 80 Order Cost $250 Reorder Point 30 units Holding Cost $5 per unit-period Co 10 11 Period Starting Inv Demand Ending Inv Order Qty Order + Inv Cost 12 60 39 21 80 $355 13 35 $330 2 101 66 0 14 66 44 22 80 $360 15 102 76 26 80 $380 16 106 63 43 0 $215 17 43 61 0 80 $250 18 80 28 52 0 $260 Suppose all formulas are correctly entered. The simulation is run for 52 periods. The total ordering and inventory holding cost (cell F3) over the entire 52 periods is most often between: O Less than $11,000 O $11,000 and $13,000 O $13,000 and $15,000 $15,000 and $17,000 More than $17,000