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Aston Holding sells ovens to home owners and provides installation service to all customers. Edward, who is the general manager of the store, examines the
Aston Holding sells ovens to home owners and provides installation service to all customers. Edward, who is the general manager of the store, examines the demand over the past 52 weeks and notes the followings: Demand (Number of ovens in a week) 10 Frequency (Number of weeks with the demand) 9 11 8 12 10 13 12 14 8 15 5 Assume that Edward keeps the same stock of 12 ovens at the beginning of any given week and no replenishment during that week. Edwards does a simulation for 10-week period. The random numbers used for the demands of the 10-week period are 0.89, 0.09, 0.15, 0.56, 0.23, 0.06, 0.78, 0.54, 0.76 and 0.96. Assume that when the demand is more than the available stock, out-of-stock or stock-out situation occurs and the demand that cannot be satisfied is lost. Based on the information given above, discuss and calculate the percentage of weeks with stock-out during this 10-week simulation. Show your working in detail and explain how you derive the answer. You are required to show the random digit assignment table and simulation table as part of your working. (13 marks)
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