Average daily sales of a product are 8 units. The actual number of units each day is 7.8, or 9 with probabilities 0.3.0.

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Average Daily Sales Of A Product Are 8 Units The Actual Number Of Units Each Day Is 7 8 Or 9 With Probabilities 0 3 0 1 (40.69 KiB) Viewed 54 times

Average daily sales of a product are 8 units. The actual number of units each day is 7.8, or 9 with probabilities 0.3.0.4 and 0.3 respectively. The lead time for delivery of this product averages 4 days, although the time may be 3, 4 or 5 days with probabilities 0.2, 06, and 0.2. The company plans to place an order when the inventory level drops to 32 units (based on average demand and lead-time). The following random numbers have been generated: Set 1: 60, 87, 46, 63, 50, 76, 11, 04, 97, 96,65 Set 2: 52, 78, 13, 06, 99, 98, 80, 09, 67, 89, 45 Use set I to generate lead-times and use set 2 to simulate daily demand. Simulate two ordering periods and determine how often the company runs out of stock before the shipment arrives, Use an order quantity of 32 and assume orders arrive early in the day prior to demand. You might use the below table to fill while doing the simulation. You can add as many rows as you need in order to complete two ordering periods. Day Beginning Random Demand Ending Order Lead Order in Inventory Number for Inventory Placed? Time transit Demand