Domoy Cycles, Inc. purchases a certain model of motorcycle for $5,778. To finance the purchase of this model, Domoy must pay an 18 percent annual interest rate on borrowed capital. This interest rate amounts to approximately $20 per cycle per week. Orders for additional units can be placed each week, but a minimum order size of 5 is required on any given order. It currently takes 3 weeks to receive a new shipment after the order is placed. The cost of placing an order is $70. If Domoy runs out of motorcycles in inventory, a shortage cost of $300 per unit is incurred. Currently, Domoy has 20 units of this model in inventory. Historical data showing the weekly demand follow. Assuming an order quantity of 15 and a reorder point of 10, perform a 12-week simulation of Domoy's operation. Use the first 12 two-digit random numbers from row x of Appendix C, where x is the fourth digit of your Social Security number. Show your simulation results in a table.
Number of Sales Number of Weeks
0 ............................................. 2
1 ............................................. 5
2 ........................................... 12
3 ........................................... 20
4 ........................................... 10
5.............................................. 3