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Work and solve Exercise 18 (page 77) from SimQuick: Process Simulation with Excel. The store pays $50 for every order it places. The overall mean
Work and solve Exercise 18 (page 77) from SimQuick: Process Simulation with Excel. The store pays $50 for every order it places. The overall mean number of orders placed in our simulations is the overall mean number of objects entering the process at Ord. time. In this case, that number is 12. (The one object that was unable to enter Ord. Time in each simulation was the initial one that appeared at the beginning of each simulation; hence in each simulation we placed subsequent orders at every opportunity.) We may estimate the store's ordering cost during the simulations to be ($50 per order)*(12 orders) = $600. The store also pays $.05 per day for every pair of jeans on the shelf. The overall mean number of jeans on the shelf is the overall mean inventory of Shelf. Hence we may estimate the store's holding cost during the simulations to be (90 days)*($.05 per day)*(23.82) = $107.19. So the total inventory cost is $600 $107.19 = $707.19.Management is considering the following scenarios (each row) of allowable order sizes and target values: Allowable order sizes Target values 20 60 100 100 20 60 100 120 40 60 100 100 40 60 100
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