Question: 1) Read above informations carefully. Consider an inventory control system where holding cost is $1 per part per day, order cost is $1 per order

 1) Read above informations carefully. Consider an inventory control system where

1) Read above informations carefully. Consider an inventory control system where holding cost is $1 per part per day, order cost is $1 per order per part and shortage cost is $10 per part. Beginning inventory is 100 parts. Holding cost is calculated with respect to ending inventory. And short amount will not be met later. D It is assumed that demand (i:i=1,2,n) has a complicated probability distribution including high demand days and low demand days. High demand case follow an exponential (1) distribution and low demand follow an exponential (2) distribution where you can find all expressions below. The demand will be determined with respect to previous days demand by assuming D0=0. Di={Expo(1),ifDi121Expo(2),ifDi1>21 D Table 1- Random Numbers (ii:i=1,2,7) Order amount is 50 parts and re-order point is 20 parts. Order is made in the evening and it arrives in the morning. Lateness doesn't have randomness, it is fixed to 1 day. Using the random numbers given in Table 1 calculate total cost for 7 days? Use random numbers given at Table 1 in 4 digits and construct your table with integer values

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