$*-13-21.$

Dumoor Appliance Center sells and services several

brands of major appliances. Past sales for a particular

model of refrigerator have resulted in the following

probability distribution for demand:

The lead time, in weeks, is described by the following

distribution:

Based on cost considerations as well as storage

space, the company has decided to order $10$ of these

each time an order is placed. The holding cost is

$$1$ per week for each unit that is left in inventory at

the end of the week. The stock$-$out cost has been set

at $$40$ per stock$-$out. The company has decided to

place an order whenever there are only two refrigera$-$

tors left at the end of the week. Simulate $10$ weeks

of operation for Dumoor Appliance, assuming there

are currently $5$ units in inventory. Determine what

the weekly stock$-$out cost and weekly holding cost

would be for the problem.

$13-21$ Random Numbers

Demand

$52$

$37$

$82$

$69$

$98$

$96$

$33$

$50$

$88$

$90$

Lead time

$06$

$63$

$57$

$*13-22.$

Repeat the simulation in Problem $13-21,$ assuming

that the reorder point is $4$ units rather than $2.$ Compare

the costs for these two situations.

$13-22$ Random Number

$52$

$37$

$82$

$69$

$98$

$96$

$33$

$50$

$88$

$90$