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AKNA Engineering Company (AEC) maintains a stock of commercial meat cutter machines. Businesses always desire to fulfill customers' demands to maintain service levels as high
AKNA Engineering Company (AEC) maintains a stock of commercial meat cutter machines. Businesses always desire to fulfill customers' demands to maintain service levels as high as possible. Due to uncertainty in demand and various costs involved in keeping a high level of inventories on hand to meet customer demand, it is expensive. Martha, the analyst in AEC, analyses the data of past few years and found that in any market condition, AEC could sell a minimum of 50 units in a month and a maximum of 120 units in a month. She developed the following probability distribution for AEC sales: Sales (units) Probability 50 0.15 60 0.10 70 0.08 80 0.05 0.13 100 0.16 110 0.18 120 0.15 90 Random Numbers: 0.62, 0.28, 0.77, 0.91, 0.42, 0.86, 0.34, 0.18 a) Setup the intervals of random numbers that can be used to simulate the sales of AEC. b) Use the given random numbers to simulate the sales for eight months and complete the given table, add as many rows as required. Month Random number No of Unit sold C) d) What are the average numbers of meat cutter sales per month? If AEC keeps a constant of 100 units per month, then in which month/s they will face out of stock during eight weeks simulation
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