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Names:
Group: _________________
Week
Beginning
Order size (your
Inventory after
inventory = ending
decision)
order
placement
inv of last week
10
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10
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11
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12
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TOTAL
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Dem
Holding c
Order
Purcha
Demand
Ending inventory =
post-order inv demand
Unsatisfied
demand (must
be 0)
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Game setting
Demand = 1 ton per week
12 weeks in total.
Holding cost = $1 per ton per week
Ordering cost = $8 per order
Purchasing cost = $50 per ton
Game rules
ow much to order, and (2) whether to order at the beginning of each week.
2. All demand must be satisfied.
Ordering cost
$8/order
Purchase cost =
$50 x order size
Holding cost =
$1 x avg. inv
Total costs
$8.0
$500.0
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$517.5
$0.0
$0.0
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$0.0
$0.0
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$0.0
$0.0
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$0.0
$0.0
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$0.0
$0.0
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$0.0
$0.0
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$0.0
$0.0
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$0.0
$0.0
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$0.0
$0.0
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$0.0
$0.0
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$0.0
$0.0
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12
10
0
1
10
11
12