Answer Happy

Manager of a warehouse wants to find a low cost inventory policy for printers. The manager identifies two types of variables, controllable and uncontrollable inputs. The controllable inputs are the order quantity and reorder points. The uncontrollable inputs are daily demand and variable lead time. Based on historical data, the demand data for the printers and lead times are shown below: Daily Demand For Frequency (Days) printers 0 10 1 20 2 30 3 70 4 30 5 40 Lead Time (Days) 1 Frequency (Orders) 10 15 N 3 25 a) The first policy that the manager wants to test is an order quantity of 20 printers with a reorder point of 5 printers. Conduct simulation using any software for a 20- day period?. The warehouse is open 200 days a year. Estimated ordering cost is SR30 per order. Holding cost is SR 22 per drill per year. Lost sales cost SR 25. Find total daily cost b) Re-simulate using different values of an order quantity of (35 printers) and reorder point of (4 printers). Compare total costs of the two policies. Based on the obtained results which policy would you recommend?