demand .49 .67 .06 .30 .95 .01 .10 .70 .80 lead time .84 .79 .35 .56 .64 .21 Use the following headings g| .66 .69 .76 .86 ཚ| .56 .84 lead- SOC OC TC Week OI URAI RN DF EI SO order RN time IC Lead time (weeks) Probability 2 0.20 Demand/ week Probability 0 0.10 3 0.65 1 0.45 4 0.15 2 0.30 3 0.15
CWD Electronics sells computers , which it orders from the USA. Because of shipping and
handling costs, each order must be for 12 units . Because of the time it takes to receive an order,
the company places an order every time the present stock drops to 6 units. It costs $120 to place
an order. It costs the company $75 in lost sales when a customer asks for a computer and the
warehouse is out of stock. It costs $5 to keep each computer stored in the warehouse. If a customer
cannot purchase a computer when it is requested, the customer will not wait until one comes in but
will go to a competitor. The demand for computers and the time required to receive an order
once it is placed (lead time) has the following
The company has 10 computers 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 at the end of week one will
arrive at the beginning of week 4.
Required
a) Construct the appropriate random number mappings for the random variables starting
with .00.
b) Simulate CWD's ordering and sales policy for 15 weeks.
c) Compute the average cost of the policy
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