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Troy's Tires sells a certain brand tire which has a daily demand that is normally distributed, with a mean of 15 tires and a standard
Troy's Tires sells a certain brand tire which has a daily demand that is normally distributed, with a mean of 15 tires and a standard deviation of 4 tires. (In your model use integers for all demands.) Troy's Tires replenishes its inventory by ordering 350 tires from the factory whenever its current inventory reaches 50 tires. The lead time (in days) to receive an order from the factory follows the distribution shown in the following table: Lead Time Probability 0.10 2 0.22 0.28 0.15 5 0.15 6 0.10 The cost to hold 1 tire in inventory for one day is $0.25. The cost to place an order with the factory is $80. Stockout costs are estimated at $11 per tire. The initial inventory level is 90 tires. a. Simulate 6 months (180 days) of operation to calculate the total semiannual cost and the percentage of stockouts for the period. Replicate these calculations 350 times each to calculate the average values for these measures. b. Troy's Tires would like to evaluate the economics of ordering 150, 200, 250, 300, and 350 tires, with a reorder point of 50 tires. Based on the average total semiannual cost, which order quantity would you recommend
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