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The materials manager of a firm wishes to determine the expected demand for a particular item in stock during the reorder lead time. The information
The materials manager of a firm wishes to determine the expected demand for a particular item in stock during the reorder lead time. The information is needed to determine how far in advance to reorder before the stock level is reduced to zero. However both the lead time in days and the demand per day of the item are random variables, described by the probability distribution given in following table: Lead Time (Days) Probability Demand/Day(Units) Probability 1 0.5 1 0.1 2 0.3 2 0.3 3 0.2 3 0.4 4 0.2 Manually simulate the problem for ten reorders to estimate the demand during lead time. Use the random numbers 47, 45, 99, 62, 28, 40, 17,05, 99, 92, 50, 19, 81, 53, 20, 28, 38, 14, 62, 85, 59, 47, 63, 67, 15, 43, 31, 08
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