Simulation to evaluate inventory policies in a stochastic environment 

Build flowchart, program code (VBA-EXCEL, matlab, or C++) Revision continues A company wants to determine which is the best policies for one of its products. You want to determine the reorder point (R) and the quantity to buy (Q) Assume: 1. The time it takes an order to arrive is: a. constant (t=1) b. Poisson (t=1+poisson(u=2) 2. The demand is a random variable a uniform (0-99) b. Normal (u=50,sigma=12) 3. Cost of hauling materials is $ 0.75 per unit per night 4. Unsatisfied demand can not be delivered late, each unit not sold represents loss of earnings of $ 16 and $ 2 per reputation 5. There is a fixed cost per lot of $ 75 6. There can only be one ticket at a time 7. The initial inventory is 115 units Construct a general model to test various inventory policies (R, Q) that allow you to vary the system parameters. Try each policy for 180 days. Try the following combinations: 

R	Q
125	150
125	250
150	250
175	250
175	300

Start Read H Cost A Tivel Cost of To Initi Invento y s Simulation Vonn Rend 2 amount of Choose distribution of iemand Choose wait time STS K 000 status bin Variables H Inventory C A Fixed cost of ordering T Cost Sale lost Is Initial Inventory Ls. Long simulation R Re point Amount to seo cer Q c Acum Jinta, of ost cost sales Cu: UMJ ator of cost of order c A atur cost of inventury CT: Total Cost K of when next order af Jes I Inventory by hand Trnd ex of day Do demand of day Vr: ost sale. Time an t: yes 0000