Question

Simulate Sound Warehouse orderings and sales policy for 20 months, using a calculator or excell.

Sound Warehouse in Georgetown sells CD players (with speakers), which it order from Fuji Electronics Japan. Because of shipping and handling cost, each order must be for five CD players. Because of the time to receive an order, the warehouse outlet places an order every time the present stock drips to five CD players. It cost $100 to place an order. It cost the warehouse $400 in lost sales when a customer asks for a CD player and the warehouse it out of sock. It cost $40 to keep each CD player stored in the warehouse. If a customer cannot purchase a CD player when it is requested, the customer will not wait until one comes in but will go to a competitor. The following probability distribution for demand for CD has been determined. Demand per Probability month DOT 0.04 1 0 .08 2 0 .28 3 0.40 0.16 0.02 -6_10.02 The time required to receive an order once it is places has the following probability distribution Time to receive Probability an order 1 0 .60 0.30 0.10 The warehouse has five CD players in stock. Orders are always received at the beginning of the week. Simulate Sound Warehouse's ordering and sales policy for 20 months, using your calculator or EXCELL to generate random numbers (0,1).

Answer 1

Answer:----                                                               Date:--29/3/2020

Demand Per Month Range Probability 0.4 0-7 1 0.8 2 0.28 0.40 0.16 L5 0.2 6 Develop probability distribution for Time receives order: Cumulative Distribution 0.8 0.12 0.40 0.80 0.96 0.98 1.00 8-11 12-39 40-79 80-95 96-97 98-99 Time to Receive an Order (mo.) Probability 0.60 0.30 0.10 Cumulative Distribution 0.60 0.90 1.00 Range 0-59 60-89 90-99 Step: 2 Tabular Simulation: Months stock Cost (Order place lost sales +order holding) Rn, for Time to Rn, for Time to Demand receive Sales Demand receive an and order order 392 19 3 653 90 32 76 3 6920 45 | 3 | 64 2 | 3 2 0 0 2 40x2=$80 1x100x400=S40,000 3x100x400-S120,000 40x2=$80 | | 733 71 00 70 99 0 2 0 3x100x400=$120,000 03 40x3=$120 130 3 00 T0 3 3x100x400-$120,000 1 2 3 0 2x100x400=$80,000 | 18 $ 480,280 10 6 85 $480,280 Average Monthly Cost = -= $ 48,028 per month