1.1 (15 points) For a given (postulated) pair of production and demand distribution models, we want to estimate certain

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1.1 (15 points) For a given (postulated) pair of production and
demand distribution models, we want to estimate certain
characteristics of the single-item inventory model based on
simulated inventory balance equations over a sequence of weeks.
Input data:
Weekly production distribution: Uniform(60, 90) Weekly demand
distribution: Normal(75,15) Inventory at the beginning of week 1:
10 items No. of weeks simulated: 50
Inventory balance equation, for each week:
Ending inventory = Beginning inventory + Production – Units
sold
Observe that the number of units sold either equals the demand or
the available inventory (whichever is smaller).
1.2 (15 points) We want to estimate the following quantities:
average and standard deviation of the beginning inventory,
production, demand, and units sold; we also estimate the stockout
probability. Create the graphs of the following quantities as these
evolve over 50 weeks: beginning inventory, production, demand,
units sold, and ending inventory.
1.3 (5*4 = 20 points) Describe shortly the expected effect of
changing the input parameters indicated below.
Production distribution: Uniform(Min, Max) Demand distribution:
Normal(Mean, StdDev) Beginning inventory