Question

It is week 1 and there are currently 20 As in stock. We need 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1​ week, when and how large of an order should be placed to meet the requirement of 300​ As?

Answer 1

Answer:

40 units at the start of week 4

Explanation:

Week         Quantity        Accumulated Quantity

   1                    20                          20

   2                      0                          20

   3                  120                          140

   4                  120                         260   --->  Order by 40 units *

   5                   40 *                       300          

* 40 units, received in week 5, from order placed 1 week before ( week 4 )

Answer 2

Answer:

An order of 40As should be placed to meet the requirement of 300​ As at Week 4

Explanation:

Given

Current Week: Week 1

Stock: 20 As

End Week: Week 5

Stock: 30 As

Activities within the week are as follows:

In the question, there's no planned receipt for week 2;

So, the data entry for week 2 is

Week 2:

Stock: 0 As

There are scheduled receipts planned for week 3 and week 4 of 120 As each;

Week 3:

Stock: 120 As

Week 4:

Stock: 120 As

Since the End week is week 5 and at this point there are (20 + 0 + 120 + 120) As in stock;

To balance the stock, there's a need for 300 As - (20 + 0 + 120 + 120) As

= 40 As.

So, Week 5 Entry is as follows;

Week 5:

Stock: 50 As

Tabulate the above findings in a table;

Week         Quantity        Accumulated Quantity

  1                    20                          20

  2                      0                          20

  3                  120                          140

  4                  120                         260

  5                   40                         300

The Accumulated Quantity stands as the cumulative frequency of the table.

It is stated that, the expectant week is week 5 and there's a lead time of 1 week.

So, the order should be placed at

Week (5 - 1)

The order should be placed at week 4

The Size of order to be placed = Total Requirement - Accumulated Quantity at Week 4

Size of order to be placed = 300 - 260

Size of order to be placed = 40.

Conclusively, an order of 40As should be placed to meet the requirement of 300​ As at Week 4