# of Probability Mapping ( 0- Demand per Probability Mapping ( 0-

Cuctomers 99 ) Customer 99 )

0 0.1 0-9 1 0.1 0-9

1 0.3 10-39 2 0.15 10-24
2 0.25 40-64 3 0.4 25-64
3 0.2 65-84 4 0.35 65-99
4 0.15 85-99

Inventory Level
# of Demand per Total Ordering or
Week RN1 RN2 Beginning Ending
Customers Customer Demand Receiving

37 3
62 3
1 59 2 6 25 19 -

3 1

2 32 1 1 19 18 -

14 2
46 3
3 52 2 5 18 13 -

63 3

4 33 1 3 13 10 -

73 4
77 4
5 72 3 11 10 -1 order 25
25 3
 Costs

Ordering Holding Backorder Total

Order Q when inventory <= R and there is no outstanding order
Q 25
R 10
- 19 - 19
Costs:
Ordering 45
Holding 1
Backorder 5
- 18 - 18

- 13 - 13

- 10 - 10

45 - 5 50