Assume a storage cost of $0.001 per gallon per day and a delivery charge of $500 per delivery. Construct a computer code of the algorithm you constructed in Problem 4 and compare various order points and order quantity strategies.

Data from problem 4

Problem 3 suggests an alternative inventory strategy. When the inventory reaches a certain level (an order point), an order can be placed for an optimal amount of gasoline. Construct an algorithm that simulates this process and incorporates probabilistic submodels for demand and lag times. How could you use this algorithm to search for the optimal order point and the optimal order quantity?