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To simulate inventory management for a part

To simulate inventory management for a part

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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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 $5 G per order per unit-period H
Transcribed Image Text:To simulate inventory management for a particular product, assume that the per period demand is an integer value quantity which follows the normal distribution with mean and standard deviation 50 and 15, respectively. If the demand exceeds the starting inventory, then the ending inventory would be zero, that is, the "extra" demand is lost. Therefore, the ending inventory level is never negative. Ordering will take place at the end of the period, based on the ending inventory, and the order arrives at the beginning of the next period. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Inventory Problem Mean Demand Demand Std Dev Order Quantity Reorder Point Period 1 2 3 4 5 6 7 B 50 15 80 30 units units units units Starting Inv Demand 60 D Ending Inv E Order Cost Holding Cost =round(norm.inv(rand(),$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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