Consider an item with a linearly decreasing demand pattern. Suppose that the current level is 1,000 units/year and the trend is −400/year.

a. What are the remaining all-time requirements of the item?

b. Suppose the fixed cost per replenishment is $50, the unit variable cost is $0.80/unit, and the carrying charge is 0.20 $/$/year. Use Brosseau’s method to establish the timing and sizes of all remaining replenishments. (Assume the current inventory level is 0.) lpo897