Operations Management
Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter F, Problem 7P

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• F.7 A warehouse manager at Mary Beth Marrs Corp. needs to simulate the demand placed on a product that does not fit standard models. The concept being measured is “demand during lead time,” where both lead time and daily demand are variable. The historical record for this product, along with the cumulative distribution, appear in the table. Random numbers have been generated to simulate the next 5 order cycles; they are 91, 45, 37, 65, and 51. What are the five demand values? What is their average?

DEMAND DURING LEAD TIME PROBABILITY CUMULATIVE PROBABILITY
100 .01 .01
120 .15 .16
140 .30 .46
160 .15 .61
180 .04 .65
200 .10 .75
220 .25 1.00
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