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CWD Electronics sells Televisions (TV), which it orders from the USA. Because of shipping and handling costs, each order must be for 10 TVs. Because of the time it takes to receive an order, the company places an order every time the present stock drops to 5 TVs. It costs $50 to place an order. It costs the company $200 in lost sales when a customer asks for a TV and the warchouse is out of stock. It costs $50 to keep each TV stored in the warehouse. If a customer cannot purchase a TV 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 TV has been and the time required to receive an order once it is placed (lead time) has the following probability distribution: Lead time (weeks) Probability Demand/ week Probability 0.45 0.15 0.30 0.25 0.25 0.40 0.20 The company has 10 TVs in stock. Orders are always received at the beginning of the week. Note that a lead time of 2 weeks imply that an order placed in week one will arrive in week 4. Hint. No order is placed until the current order has arrived. Usage of all random numbers for lead time depend on stock arrivals in the model hence all numbers may not be used. Required Use the following headings SOCOC TC lead- MonthOl URAI RN D DEEI So prder RN time Required a) Construct the appropriate random number mappings for the random variables wvith .00. ) Simulate CWD's ordering and sales policy for 20 weeks. ) Compute the average cost of the policy

CWD Electronics sells Televisions (TV), which it orders from the USA. Because of shipping and handling costs, each order must be for 10 TVs. Because of the time it takes to receive an order, the company places an order every time the present stock drops to 5 TVs. It costs $50 to place an order. It costs the company $200 in lost sales when a customer asks for a TV and the warchouse is out of stock. It costs $50 to keep each TV stored in the warehouse. If a customer cannot purchase a TV 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 TV has been and the time required to receive an order once it is placed (lead time) has the following probability distribution: Lead time (weeks) Probability Demand/ week Probability 0.45 0.15 0.30 0.25 0.25 0.40 0.20 The company has 10 TVs in stock. Orders are always received at the beginning of the week. Note that a lead time of 2 weeks imply that an order placed in week one will arrive in week 4. Hint. No order is placed until the current order has arrived. Usage of all random numbers for lead time depend on stock arrivals in the model hence all numbers may not be used. Required Use the following headings SOCOC TC lead- MonthOl URAI RN D DEEI So prder RN time Required a) Construct the appropriate random number mappings for the random variables wvith .00. ) Simulate CWD's ordering and sales policy for 20 weeks. ) Compute the average cost of the policy

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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CWD Electronics sells Televisions (TV), which it orders from the USA. Because of shipping and handling costs, each order must be for 10 TVs. Because of the time it takes to receive an order, the company places an order every time the present stock drops to 5 TVs. It costs $50 to place an order. It costs the company $200 in lost sales when a customer asks for a TV and the warchouse is out of stock. It costs $50 to keep each TV stored in the warehouse. If a customer cannot purchase a TV 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 TV has been and the time required to recæive an order once it is placed (lead time) has the following probability distribution: Lead time (weeks) Probability Demand/ week Probability 0.45 0.15 2 0.30 025 0.25 3 0.40 020 The company has 10 TVs in stock. Orders are always received at the beginning of the week. Note that a lead time of 2 weeks imply that an order placed in week one will arrive in week 4. Hint. No order is placed until the current order has arrived. Usage of all random numbers for lead time depend on stock arrivals in the model hence all numbers may not be used. Required kadi Use the following headings lead- SOCOC MonthOI URAI RN D DFEI So prder RN time IC Required a) Construct the appropriate random number mappings for the random variables starting with .00. b) Simulate CWD's ordering and sales policy for 20 weeks. C) Compute the average cost of the policy
Transcribed Image Text:CWD Electronics sells Televisions (TV), which it orders from the USA. Because of shipping and handling costs, each order must be for 10 TVs. Because of the time it takes to receive an order, the company places an order every time the present stock drops to 5 TVs. It costs $50 to place an order. It costs the company $200 in lost sales when a customer asks for a TV and the warchouse is out of stock. It costs $50 to keep each TV stored in the warehouse. If a customer cannot purchase a TV 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 TV has been and the time required to recæive an order once it is placed (lead time) has the following probability distribution: Lead time (weeks) Probability Demand/ week Probability 0.45 0.15 2 0.30 025 0.25 3 0.40 020 The company has 10 TVs in stock. Orders are always received at the beginning of the week. Note that a lead time of 2 weeks imply that an order placed in week one will arrive in week 4. Hint. No order is placed until the current order has arrived. Usage of all random numbers for lead time depend on stock arrivals in the model hence all numbers may not be used. Required kadi Use the following headings lead- SOCOC MonthOI URAI RN D DFEI So prder RN time IC Required a) Construct the appropriate random number mappings for the random variables starting with .00. b) Simulate CWD's ordering and sales policy for 20 weeks. C) Compute the average cost of the policy
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