Question
Russell Trent, an inventory expert at Crabtree & Evelyn, recently developed a simulation model he believes will be an outstanding training tool for new inventory
Russell Trent, an inventory expert at Crabtree & Evelyn, recently developed a simulation model he believes will be an outstanding training tool for new inventory and supply chain analysts. The problem is that Russell doesn't know how to validate the model.
That's where you come in. With your knowledge of simulation, you will be able to complete a practice simulation using the given parameters and advise Russell on the values of key inventory metrics the model should produce. The values of the necessary parameters are given in the table below.
Days to simulate & 18 \\ Average demand & 205.9 (units/day) \\ Standard deviation demand & 47.995 (units/day) \\ Beginning units on hand & 2945 \\ Units on order & 981 \\ Day order arrives & 12 \\ \end{tabular}
To ensure that Russell's model will produce the same results, you will both use the following uniform random numbers (U~Unif[0,1]) when generating your random demand values.
Simulated Day & U~Unif[0,1] \\ \hline 1 & 0.706 \\ 2 & 0.242 \\ 3 & 0.613 \\ 4 & 0.126 \\ 5 & 0.883 \\ 6 & 0.245 \\ 7 & 0.738 \\ 8 & 0.88 \\ 9 & 0.453 \\ 10 & 0.306 \\ 11 & 0.572 \\ 12 & 0.182 \\ 13 & 0.896 \\ 14 & 0.99 \\ 15 & 0.172 \\ 16 & 0.906 \\ 17 & 0.608 \\ 18 & 0.308 \\
Ending inventory on hand (units) = Units remaining on order = Units shorted = Units filled =
Note: enter all values as integers.
The following may ease your data entry burden...
0.706, 0.242, 0.613, 0.126, 0.883, 0.245, 0.738, 0.88, 0.453, 0.306, 0.572, 0.182, 0.896, 0.99, 0.172, 0.906, 0.608, 0.308
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