14. The Stasik Pharmaceutical Company’s distribution planning manager is concerned about the rising cost of outdated inventory in the firm’s distribution warehouses. Shelf life for the company’s products shouldn’t exceed four weeks. Government regulations require products in stock longer than four weeks to be scrapped. Devise an exception notice test that can be applied to the DRP records in the firm’s distribution warehouses to direct the inventory planner’s attention to items where excess inventory may exist. Apply this procedure to the following record to determine whether out-of-date inventory is likely to occur for product W.

Week Product W 1 2 3 4 5 6 7 8 Forecast requirements 300 300 300 300 300 300 300 300 In transit 900 Projected available balance 350 50 650 350 950 650 1250 950 1550 Firm planned orders 900 900 900 Planned shipments Q = 900; SS = 50 units; LT = 2 weeks.