The weekly demand for a product is Uniform between 300 and 500. The weekly production is Normal
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The weekly demand for a product is Uniform between 300 and 500. The weekly production is Normal with mean 350 and standard deviation 50. A new batch must be produced each week and the company loses $3 per unit for all surplus production. Shortages cost $15 per unit. It is possible to schedule overtime in advance at an additional cost of $5 per unit. Overtime production can be 40 or 80 units with equal probability. Simulate for 6 weeks to decide if overtime should be scheduled or not. Use random numbers from columns 8, 9, and 10 to simulate demand, regular production and overtime production respectively.
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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