Consider an item with the following deterministic, time-varying demand pattern: Week 1 2 3 4 5 6

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Consider an item with the following deterministic, time-varying demand pattern:

Week 1 2 3 4 5 6 Demand 50 80 180 80 0 0 Week 7 8 9 10 11 12 Demand 180 150 10 100 180 130 Suppose that the pattern terminates at week 12. Let other relevant characteristics of the item be:

Inventory carrying cost per week (incurred only on units carried over from 1 week to the next) is $0.20/unit.
Fixed cost per replenishment is $30.
Initial inventory and replenishment lead time are both zero.
Perform an analysis similar to that of Problem 5.4 (of course, substituting “week” for

“month”).

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Inventory And Production Management In Supply Chains

ISBN: 9781032179322

4th Edition

Authors: Edward A Silver, David F Pyke, Douglas J Thomas

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