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:
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
