# 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

4 1
14 2
1 52 2 3 25 22 -

69 4

2 22 1 4 22 18 -

84 4
85 4
3 75 3 9 18 9 order 25
7 1

49 3

4 29 1 3 9 6 -

2 1
7 1
5 75 3 5 6 1 received 25
27 3
 Costs

Ordering Holding Backorder Total

Order Q when inventory <= R and there is no outstanding order
Q 25
R 10
- 22 - 22
Costs:
Ordering 45
Holding 1
Backorder 5
- 18 - 18

45 9 - 54

- 6 - 6

- 1 - 1