18. A book store wishes to carry Systems Analysis and Design in stock. Demand is probabilistic and replenishment of stock takes 2 days (i.e. if an order is placed on March 1, it will be delivered at the end of the day on March 3). The probabilities of demand are given below:

Each time an order is placed, the store incurs an ordering cost of Rs 10 per order. The store also incurs a carrying cost of Re 0.50 per book per day. The inventory carrying cost is calculated on the basis of stock at the end of each day.
The manager of the book store wishes to compare two options for his inventory decision.
(A) Order 5 books when the inventory at the beginning of the day plus orders outstanding is less than 8 books.
(B) Order 8 books when the inventory at the beginning of the day plus orders outstanding is less than 8.
Currently (beginning 1st day) the store has a stock of8 books plus 6 books ordered two days ago and expected to arrive next day.
Using Monte-Carlo Simulation for 10 cycles, recommend which option the manager should choose.
The two-digit random numbers are given below:

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Demand (Daily) Probability 0 2 3 4 0.05 0.10 0.30 0.45 0.10