Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A store sells refrigerator and a check the sales database to determine the weekly refrigerator sales. Store manager realize that the demand for the

A store sells refrigerator and a check the sales database to determine the weekly refrigerator sales. Store manager realize that the demand for the product is zero or one or two refrigerator in a week. He checks last 100 weeks and assumes that demand distribution can be calculated by using following table. Weekly demand 1 Number of weeks 50 2 20 The store uses the following inventory policy: Store manager checks the inventory level at the end of every week. If the inventory level is less than or equal to 1, store manager orders up to 3 units. Otherwise she does not order. Refrigerators are delivered at beginning of next week. This policy is called (R, s, S). In this question R = 1 week, s = 1, and S = 3. Manager also asssumes that unsatisfied demand is lost. a) (10 points) Could you model the above problem as a Markov Chain? Do you think the stationarity assumption is reasonable for your model? Explain. b) (15 points) Define X, that shows the number of refrigerators at the end of the week and Identify the state space. Explain how you define the states. c) (10 points) Draw the transition diagram and write down the P matrix. d) (15 points) If the store end up with 2 products in the last two weeks, what is the probability that store end up with one product back to back 2 weeks and end up with full inventory(3 products) in the last week?

Step by Step Solution

3.36 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

A a Yes this problem can be modeled as a Markov Chain The state space would be the number of refrigerators in the store ranging from 0 to 3 The transi... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of heat transfer

Authors: Frank Kreith, Raj M. Manglik, Mark S. Bohn

7th Edition

495667706, 978-0495667704

More Books

Students also viewed these Mathematics questions

Question

2 . 1 5 LAB: Branches: Seasons

Answered: 1 week ago