Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ASSIGNMENT using monte carlo simulation and modellimg solve the following case XYZ has a policy of ordering stock when level falls to 15 units the
ASSIGNMENT using monte carlo simulation and modellimg solve the following case XYZ has a policy of ordering stock when level falls to 15 units the quantity ordered from the supply is always 20 units. The stock at beginning of 1st week is 20 units. The stock holding costs are sh. 10 per week / unit. The cost of placing one order 25. The stocks out cost are Sh100 per unit. The usage (demand) and lead time (time taken by supply to deliver stock) is uncertain as shown below. NB: Ordering is done the following week upon discovery of the shortages. Demand Probability Lead time Probability 0 0.02 1 0.23 1 0.08 2 0.45 2 0.22 0.17 3 0.34 4 0.09 4 0.18 0.06 5 0.09 1.00 6 0.07 1.00 Required; Use the following random numbers 68 52 50 90 59 08 72 44 95 85 81 93 28 89 15 60 03 Use 14 trial numbers to find the cost
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started