I need some help with this as soon as posible. I need to see the thought process

Question

I need some help with this as soon as posible. I need to see the thought process and tables of attempt to solve the problem. A detailed step by step explanation would be really appreciated.

Use a separate excel spreadsheet to answer each of the 6 questions using the data rovided. Also, provide a detailed description of the steps taken while working the roblems. Lastly, explain why the numbers obtained resembled those expected I. For the next gight week period, a supplier will deliver orders of the sarpe quantity period, a supplier will deliver orders of the same every Monday morning. The customer's daily demand will be constant at 200 units over this period and there is no initial inventory. Plan what the order quantity should be such that the fill rate is 100% andthe average inventory is minimized. For this and all the questions to follow, the weekly average inventory formula is = MA ,IF(end.inv-0 (beg inv.end.inv)/2 (beginv.) (2x(beg invrend.inv.))

Explanation / Answer

Average inventory increases if the closing inventory increases considering the formula .

Average Inventory = MAX ( 0, if ( clo.inv>=0,( open. inv.+clo.inv)/2,open.inv^2/ ( 2*(open.inv+clo.inv)))

Say for eg. opening inventory= 400 and closing inventory is 0 . Then Average inventory = (400 +0)/2= 200

if opening inventory= 400 and closing inventory is 20. then Average inventory = ( 400^2)/( 2*(400+20))= 210.

if opening inventory= 400 and closing inventory is 40. then Average inventory = ( 400^2)/( 2*(400+40))= 220.

So to minimize average inventory , closing balance is to be 0 . Inorder to keep closing balance to be 0, the ordered quantity = weekly demand .

Here customer demand is 200 units per day. So the 1400 units per week. So the ordered quantity is 1400 units.

Below table shows the ordered quantityat the begning of every week and average inventory

Week Opening Inventory Supplied units in beginning of Week Demand ( 200 units perday) Closing inv Average inventory per week Week 1 0 1400 1400 0 700 Week 2 0 1400 1400 0 700 Week 3 0 1400 1400 0 700 Week 4 0 1400 1400 0 700 Week 5 0 1400 1400 0 700 Week 6 0 1400 1400 0 700 Week 7 0 1400 1400 0 700 Week 8 0 1400 1400 0 700

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