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Question 5 Sinar TV maintains a stock of LED television that it sells to house owners and installs for them. The sales of the
Question 5 Sinar TV maintains a stock of LED television that it sells to house owners and installs for them. The sales of the televisions for the past 60 days have the following probability distribution. Television sales 1 per day Probability 2 3 4 0.2 0.3 0.4 0.1 Order delivery time can vary between one to three days according to the following distribution. Order Time Delivery 1 2 3 Probability 0.5 0.4 0.1 For each unit demand not met, it will cost the company RM 5. For each television sold, the company makes RM 50 profit. The company orders 10 units of television when the ending inventory reaches 4 units or less. Each order costs the company RM 10. The order would be made at the end of the business day, and would take 1 to 3 days to be delivered. (i) Assuming the beginning inventory is 10 units, simulate the situation above for 8 day period using the random numbers given below Random number sales per day: 41 43 85 87 0651 15 71 Random numbers for delivery/order time: 21 52 59 64 48 96 52 11 Using table format below Units Begin Ending Lost Order Total Day Received Inventory RN1 Demand Inventory Sales Order RN2 Time C1 C2 Cost Profit C1 Order cost C2 Cost of lost sales (ii) For the 8 day simulation, what is a. Average sales per day b. Average net profit per day c. Total Cost
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