The appliance center sells and services several brands of major appliances. Past sales for a particular model of refrigerator have resulted in the following distribution for demand:
Demand / week Probability
The lead time, in weeks, is described by the following distribution
Lead Time Probability
the company has decided to order 10 units each time an order is placed. The holding cost is $1 per unit held at the end of each week. The stockout cost is $40 per week. The reorder point is when there is 2 units at the end of the week.
Simulate 10 weeks of operation assuming that there are 5 units in stock at the beginning of the simulation.
Determine weekly stockout and holding costs.
Formatted in Excel
Quantitative Analysis for Management, Render, Stair, and Hanna.11th Edition, Pearson Prentice-Hall, 2012. ISBN: 9780132149112.
Please see 10 weeks simulation attached. Please keep in mind that as I ...
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