An appliance store sells a mixer with popular demand. The
initial shock was 25 mixers. Inventory policy: order a size of 25
mixers when the inventory level drops to 10 mixers (reorder level).
Lead time = 2 weeks (for order to arrive) Costs: Holding :
$1/unit/wk Ordering : $45/order Back order: $5/unit/wk the observed
probability of both #of customers I demandsadporwk): # of customers
0 I 2 3 4 Probability. 0.1 0.3 0.25 0.2 0.15 demand/customer 1. 2 3
4 Probability 0.1 0.15 0.4 0.35 NB: we can't place a new order
before receiving an earlier one. Simulate the process based on
weekly steps, considering costs of: Ordering, holding & back
order and total.
An appliance store sells a mixer with popular demand. The initial shock was 25 mixers. Inventory policy: order a size of
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