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Cik Suriani, the manager of a grocery store, orders milk from a dairy on a weekly basis. In her store, she has observed the following

Cik Suriani, the manager of a grocery store, orders milk from a dairy on a weekly basis. In her store, she has observed the following probability distribution for demand:

Demand (cases)/week

Probability

18

19

20

21

22

0.17

0.18

0.30

0.20

0.15

One milk case costs the grocery RM 8 and selling price is RM 15 per case. The holding cost is RM 0.50/case and shortage cost is RM 1.00 per case. Simulate the business for 10 weeks. Use a weekly order size of 20 cases of milk and compute the average weekly profit for this order size. (For simulation purpose, use the random numbers: 59, 58, 52, 90, 30, 81, 69, 90, 45, and 50)

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