Simkins Hardware Store, in Reno, sells the Ace model electric drill. Daily demand for this particular product
Question:
Simkin’s Hardware Store, in Reno, sells the Ace model electric drill. Daily demand for this particular product is relatively low but subject to some variability. Lead times tend to be variable as well. Mark Simkin wants to develop a simulation to test an inventory policy of ordering 10 drills, with a reorder point of 5. In other words, every time the on-hand inventory level at the end of the day is 5 or less, Simkin will call his supplier that evening and place an order for 10 more drills. Simkin notes that if the lead time is 1 day, the order will not arrive the next morning but rather at the beginning of the following workday. Stockouts become lost sales, not backorders.
APPROACH c Simkin wants to follow the 5 steps in the Monte Carlo simulation process.
Step by Step Answer:
Operations Management: Sustainability And Supply Chain Management
ISBN: 9780135225899,9780135202722
13th Edition
Authors: Jay Heizer; Barry Render; Chuck Munson