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Tong electrical shop sells and services several brands of air conditioner. Past sales record for a particular brand of air conditioner have resulted in the
Tong electrical shop sells and services several brands of air conditioner. Past sales record for a particular brand of air conditioner have resulted in the following probability distribution for demand: The lead time, in weeks, is described by the following distribution: Based on cost considerations as well as storage space, the company has decided to order 10 of these each time an order is placed. The holding cost is MYR1 per week for each unit that is left in inventory at the end of week. The stockout cost has been set at MYR40 per stockout. The company has decided to place an order whenever there are only two air conditioners left at the end of week. Simulate 10 weeks of operation for this company assuming there are currently five units in inventory. Determine what the weekly stockout cost and weekly holding cost would be for the
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