The Garaje ABC Inc. of Mayaguez is the best-selling Mercedes-Benz dealer in the West of the island. In the past 36 months, their sales have ranged from a low of 6 new cars to a high of 12 as reflected in the table below.

Garaje ABC considers that its sales will continue with the same pattern for the next 24 months and that delivery times will continue at the same rate as also indicated in the table, in the form of probabilities.

Car Sales per Month	Frequency	Delivery Time (months)	Probability
6	3	1	0,20
7	4	2	0.30
8	6	3	0.40
9	12	4	0.10
10	9	Total	1.00
11	1
12	1
Total	36 months

The current policy of the garage is to order 14 cars at a time since this completes the load of two trucks, 7 cars each. Also, a new order is placed every time the inventory reaches 12 cars.

a) Determine the results of these inventory policies, in terms of average demand, average lead time, ending inventory and average number of lost sales when simulating for the next two years. Arbitrarily assume the starting inventory you deem appropriate.

b) Consider that ABC Garage has established the following relevant costs: (1) Monthly cost of keeping a Mercedes in inventory: $ 600 (2) Average cost of lost sale: $ 4,350 and (3) Cost of processing an order: $ 570. What is the total cost of inventory per month under the policy simulated in part (a)?

For the simulation you should use Table 15.5, p. 632 of ed. 11 of the textbook (Table 14.4, page 539 of ed. 10) taking the random numbers, for the demand and the delivery time in that order, according to the following table:

ID # Finished in	Table 15.5 Random Numbers Columns
0, 1, 2, 3	1, 2
4, 5, 6	3, 4
7, 8, 9	5, 6