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CWD Office Supplies sells Printers, which it orders from Kajama Inc in Japan. Because of shipping and handling costs, each order must be for 5

CWD Office Supplies sells Printers, which it orders from Kajama Inc in Japan. Because of shipping and handling costs, each order must be for 5 printers. Because of the time it takes to receive an order, the company places an order every time the present stock drops to 5 Printers. It costs $50 to place an order. It costs the company $500 in lost sales when a customer asks for a Printer and the warehouse is out of stock. It costs $100 to keep each Printer stored in the warehouse. If a customer cannot purchase a Printer when it is requested, the customer will not wait until one comes in but will go to a competitor. The following probability distribution for demand for Printer has been determined: The time required to receive an order once it is placed (lead time) has the following probability distribution: We assume that no order is placed until the previous order arrives and the stock is used to the reorder level. The company has 3 Printers in stock. Orders are always received at the beginning of the week. A lead time of 2 weeks imply that an order placed in week one will arrive in week 4. Required a) Construct the appropriate random number mappings for the random variables starting with .00.(2.5 marks for demand and 1.5 mark for lead time) b) Simulate CWD 's ordering and sales policy for 20 weeks. (12 marks) c) Comnite tWe assume that no order is placed until the previous order arrives and the stock is used to
the reorder level.
The company has 3 Printers in stock. Orders are always received at the beginning of the week. A
lead time of 2 weeks imply that an order placed in week one will arrive in week 4.
Required
a) Construct the appropriate random number mappings for the random variables starting
with .00.(2.5 marks for demand and 1.5 mark for lead time)
b) Simulate CWD 's ordering and sales policy for 20 weeks. (12 marks)
c) Compute the average cost of the policy (4 marks)
Use the following headingshe averaou cost of the nolicvi 4 marks) Use the following headings ( PLEASE USE THE HEADINGS TO WHEN ANSWERING AS STATED
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