Periodic Review & Min–Max Inventory Policies: Review Periods, Order-Up-To Levels, Pipeline Stock, a 52-Week Simulation & Joint Replenishment

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Set the reorder point of a continuous (s,Q) policy and the order-up-to level of a periodic (R,S) policy for the same item, place today's min–max order and compare how often each policy orders.
• Look up a service factor per ABC class, size the safety stock over the protection period R + L, set the order-up-to level S and round it up to whole case packs.
• Build a cost table for review periods from 1 to 8 weeks: ordering cost per year, cycle and safety stock, holding cost, the total, and the review period with the lowest total cost.
• Calculate the inventory position of eight items at the weekly review, the quantity that brings each item back to S, the order rounded to case packs and the value of the whole order.
• Complete a 52-week (R,S) simulation: look up the order that arrives after the lead time, update the net stock, place the order that brings the position back to S, and chart the on-hand path.
• Evaluate a 52-week run: count the weeks with a stock-out, calculate the fill rate from units served and demand, measure the average stock and highlight the weeks where sales were lost.
• Price six min–max settings that were simulated over the same year, calculate their fill rates and pick the cheapest setting that still meets the service target.
• Decide whether a supplier's joint order is triggered, order every item below its can-order level up to S in whole cases, total the order and work out the top-up to the supplier's minimum order value.