Question
The weekly demand for a product is Uniform between 300 and 500. The weekly production is Normal with mean 350 and standard deviation 50. A
The weekly demand for a product is Uniform between 300 and 500. The weekly production is Normal with mean 350 and standard deviation 50. A new batch must be produced each week and the company loses $3 per unit for all surplus production. Shortages cost $15 per unit. It is possible to schedule overtime in advance at an additional cost of $5 per unit. Overtime production can be 40 or 80 units with equal probability. Simulate for 6 weeks to decide if overtime should be scheduled or not. Use random numbers from columns 8, 9, and 10 to simulate demand, regular production and overtime production respectively.
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Simulation trials Trial Random Number Value 1 8045796776 300 2 1779315277 300 3 301...Get Instant Access to Expert-Tailored Solutions
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Get StartedRecommended Textbook for
Mathematical Applications for the Management Life and Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
11th edition
9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042
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