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Dumoor Appliance Center sells and services several brands of major appliances. Past sales for a particular model of refrigerator have resulted in the following probability
Dumoor Appliance Center sells and services several brands of major appliances. Past sales for a
particular model of refrigerator have resulted in the following probability distribution for
demand:
The lead time, in weeks, is described by the following distribution:
Based on the cost considerations as well as storage space, the company has decided to order
of these each time an order is placed. The holding cost is $ per week for each unit that is left in
inventory at the end of the week. The stockout cost has been set at $ per stockout. The
company has decided to place an order whenever there are only refrigerators left at the end
of the week. Simulate weeks of operation for Dumoor Appliance assuming there are
currently units in inventory. Determine what the weekly stockout cost and weekly holding
cost would be for the problem. points
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