Julia Walters : Order Quantity Policy - Simulation
Not what you're looking for?
Julia Walters owns and operates one of the largest Mercedes-Benz auto dealerships in Washington, DC. In the past 36 months her sales of this luxury car have ranged from a low of 6 new cars to a high of 12 new cars, as reflected in the following table:
Sales of new cars per month Frequency
6 3
7 4
8 6
9 12
10 9
11 1
12 1
Total 36
Walters believes that sales will continue during the next 24 months at about the same historical rates and that delivery times will also continue to follow this pace (stated in probability form):
DELIVERY TIME (MONTHS) PROBABILITY
1 0.44
2 0.33
3 0.16
4 0.07
Walters's current policy is to order 14 cars at a time (two full truckloads, with 7 autos on each truck) and to place a new order whenever the stock on hand reaches 12 autos. What are the results of this policy when simulated over the next two years?
Purchase this Solution
Solution Summary
This posting contains solution to following problem on Monte carlo simulation for inventory problem.
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media