0 1 2 3 4 0.20 0.40 0.20 0.15 0.05 1 Question 3 Seng Heng Appliance Center sells and services several brands of major appliances. Past sales for a particular model of refrigerator have resulted in the following probability distribution for demand: Demand per week Probability The lead time, in weeks, is described by the following distribution: Lead Time (weeks) 2 3 Probability 0.15 0.35 0.50 Based on cost consideration as well as storage space, the company has decided to order 10 of these each time an order is placed. The holding cost is RM1 per week for each unit that is left in inventory at the end of the week. The stockout cost has been set at RM40 per stockout. The company has decided to place an order whenever there are only two refrigerators left at the end of the week. Simulate 10 weeks of operation of Seng Heng appliance assuming there are currently 5 units in inventory. Use the following random numbers Demand: 22,65,55,95, 53, 70,30, 99, 48, 98 Lead time: 05, 12, 13, 98, 50,00 Use template below Units Begin Ending Lost Order Stockout Holding Total Day Received liwentory Rail Demand Inventory Sales Order RN2 | Time Cost RN1-Random number demand RN2 - Random number lead time (a) Explain the meaning of simulation. (2 marks) (6) Construct the table of probability distributions and random number intervals for demand and lead time. (8 marks) c) Identify the average order cost, average stockout cost average holding cost and average weekly cost by using the template given. (15 marks) [Total: 25 marks] 0 1 2 3 4 0.20 0.40 0.20 0.15 0.05 1 Question 3 Seng Heng Appliance Center sells and services several brands of major appliances. Past sales for a particular model of refrigerator have resulted in the following probability distribution for demand: Demand per week Probability The lead time, in weeks, is described by the following distribution: Lead Time (weeks) 2 3 Probability 0.15 0.35 0.50 Based on cost consideration as well as storage space, the company has decided to order 10 of these each time an order is placed. The holding cost is RM1 per week for each unit that is left in inventory at the end of the week. The stockout cost has been set at RM40 per stockout. The company has decided to place an order whenever there are only two refrigerators left at the end of the week. Simulate 10 weeks of operation of Seng Heng appliance assuming there are currently 5 units in inventory. Use the following random numbers Demand: 22,65,55,95, 53, 70,30, 99, 48, 98 Lead time: 05, 12, 13, 98, 50,00 Use template below Units Begin Ending Lost Order Stockout Holding Total Day Received liwentory Rail Demand Inventory Sales Order RN2 | Time Cost RN1-Random number demand RN2 - Random number lead time (a) Explain the meaning of simulation. (2 marks) (6) Construct the table of probability distributions and random number intervals for demand and lead time. (8 marks) c) Identify the average order cost, average stockout cost average holding cost and average weekly cost by using the template given. (15 marks) [Total: 25 marks]