Question: 1 0 - 2 8 Consider the Music Mania problem described in Problem 1 0 - 2 7 { { { Music Mania sells MP
Consider the Music Mania problem described in Problem Music Mania sells MP players to its customers. Music Mania orders MP players from its sup plier when its inventory reaches units. Daily demand for MP players is discrete, uniformly dis tributed between and both inclusive The lead time from the supplier also varies for each or der and is discrete, uniformly distributed between and days both inclusive The cost to hold unit in inventory for one day is $ The cost to place an order is $ Stockout cost per unit is estimated at $ Initial inventory is units.
Simulate this inventory policy for a quarter days and calculate the total quarterly cost. Also calculate the percentage of stockouts for the quar ter. Replicate these calculations N times each to calculate the average values for these measures.
a Music Mania would like to evaluate ordering and MP players when the reorder point of is reached. Based on the av erage total quarterly cost, which order quantity would you recommend?
b Music Mania would like to evaluate reorder points of and MP players, with an order quantity of players. Based on the av erage total cost for the quarter, which reorder point would you recommend? EXCEL FORMAT see template Mention all formulas used in the yellow, green and blue fields of the excel template
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