To simulate inventory management for a part
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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![To simulate inventory management for a particular
product, assume that the per period demand is an
integer value quantity which follows the normal
distribution with mean and standard deviation 50
and 15, respectively.
If the demand exceeds the starting inventory, then
the ending inventory would be zero, that is, the
"extra" demand is lost. Therefore, the ending
inventory level is never negative.
Ordering will take place at the end of the period,
based on the ending inventory, and the order arrives
at the beginning of the next period.
2
3
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Inventory Problem
Mean Demand
Demand Std Dev
Order Quantity
Reorder Point
Period
1
2
3
4
5
6
7
B
50
15
80
30
units
units
units
units
Starting Inv Demand
60
D
Ending Inv
E
Order Cost
Holding Cost
=round(norm.inv(rand(),$B$7,$B$8),0)
=binom.inv($B$3,$B$4,rand())
Order Qty Order + Inv Cost
=norm.inv(rand(),$B$3,$B$4)
=round(norm.inv(rand(),$B$3,$B$4),1)
F
To simulate random demand for this problem in cell
C12, a command that would work is:
None of the answers are correct.
$250
$5
G
per order
per unit-period
H](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9de9dc9-9f10-499d-a24f-d6d788edda9b%2F783162c4-3124-4303-a682-9553e4fc05f8%2Fcw7tjif_processed.png&w=3840&q=75)
Transcribed Image Text:To simulate inventory management for a particular
product, assume that the per period demand is an
integer value quantity which follows the normal
distribution with mean and standard deviation 50
and 15, respectively.
If the demand exceeds the starting inventory, then
the ending inventory would be zero, that is, the
"extra" demand is lost. Therefore, the ending
inventory level is never negative.
Ordering will take place at the end of the period,
based on the ending inventory, and the order arrives
at the beginning of the next period.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Inventory Problem
Mean Demand
Demand Std Dev
Order Quantity
Reorder Point
Period
1
2
3
4
5
6
7
B
50
15
80
30
units
units
units
units
Starting Inv Demand
60
D
Ending Inv
E
Order Cost
Holding Cost
=round(norm.inv(rand(),$B$7,$B$8),0)
=binom.inv($B$3,$B$4,rand())
Order Qty Order + Inv Cost
=norm.inv(rand(),$B$3,$B$4)
=round(norm.inv(rand(),$B$3,$B$4),1)
F
To simulate random demand for this problem in cell
C12, a command that would work is:
None of the answers are correct.
$250
$5
G
per order
per unit-period
H
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