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Hock-Brooke (Automobiles) the main dealer in Ceeham receives its new stock on Monday (most customers collecting their new cars on Saturday or Friday). These


Hock-Brooke (Automobiles) the main dealer in Ceeham receives its new stock on Monday (most customers collecting their new cars on Saturday or Friday). These new cars are stored initially in an old warehouse to be prepared for display in the showroom or when the warehouse is full in a secure parking area. The dealership is about to replace its old (large) warehouse with a modern purpose built warehouse and need to know the most suitable size for this warehouse. The following data is available to enable them to determine the best size for this new warehouse Number of cars delivered 7 Frequency (%) 10 Weekly Demand Frequency (%) 65 5 8 20 9 50 7 8 10 20 10 20 9 10 11 30 20 15 The cost of providing a single warehouse space (variable cost per week) is 10, and the cost of hiring a single parking space per week, only when used is 20. Assuming that the warehouse is initially empty simulate the operation of this dealership over a period of 30 weeks and hence determine the cost of using a warehouse which has a capacity for 9 cars.

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