QUESTION THREE |(a) Explain two circumstances under which simulation technique is preferable to analytical or optimization model. (5 marks) (b) The demand for the special 52-inch TV set at Wafula shop in Nangili city has the following Probability distribution. Weekly Demand Probabilities 10 0.18 0.27 12 0.40 13 0.15 11 The following information describes the business of Wafula's shop. O Orders are made at the end of the week (ii) Orders arrive immediately since the supplier is in the nearby street. (ii) Wafula orders exactly the number of sets demanded during the week just ended. (iv) If a customer cannot find a TV set at Wafula, he/she buys one elsewhere. (v) Today is the end of the week during which demand was for 10 sets. (vi ) The current inventory level is one and Wafula is just about to place an order. Required: Perform a 12-week simulation for Wafula's TV business so as to determine the following measures of performances: (6) The average weekly profit if a TV sells for Shs. 49,900 and its cost is Sh. 39,200. (II ) The average end of week inventory level. (before the new order arrives) (ii) The average number of lost sales in one week, in terms of TV units. (iv) The average weekly purchasing budget for TV sets. (v) The demand for TV sets generated by the 7th week of the simulation. (20 marks) RNS for demand: 69, 16, 38, 86,52, 08, 42, 75, 14, 53, 92, 26, 44, 61, 02, 20. Assign the random numbers starting with 00 [Total=25 Marks] QUESTION THREE |(a) Explain two circumstances under which simulation technique is preferable to analytical or optimization model. (5 marks) (b) The demand for the special 52-inch TV set at Wafula shop in Nangili city has the following Probability distribution. Weekly Demand Probabilities 10 0.18 0.27 12 0.40 13 0.15 11 The following information describes the business of Wafula's shop. O Orders are made at the end of the week (ii) Orders arrive immediately since the supplier is in the nearby street. (ii) Wafula orders exactly the number of sets demanded during the week just ended. (iv) If a customer cannot find a TV set at Wafula, he/she buys one elsewhere. (v) Today is the end of the week during which demand was for 10 sets. (vi ) The current inventory level is one and Wafula is just about to place an order. Required: Perform a 12-week simulation for Wafula's TV business so as to determine the following measures of performances: (6) The average weekly profit if a TV sells for Shs. 49,900 and its cost is Sh. 39,200. (II ) The average end of week inventory level. (before the new order arrives) (ii) The average number of lost sales in one week, in terms of TV units. (iv) The average weekly purchasing budget for TV sets. (v) The demand for TV sets generated by the 7th week of the simulation. (20 marks) RNS for demand: 69, 16, 38, 86,52, 08, 42, 75, 14, 53, 92, 26, 44, 61, 02, 20. Assign the random numbers starting with 00 [Total=25 Marks]