2 QUESTION 1 You are empoyed as all lastral Engine by an organisation that sels and services several brands of major app ances In recent times the organisaton expe:ienced several stock outs. I tha situation cananyes to an extended period, the impact on the organisations profility could be severe. The problem was alloceed to you for investgation and finding possible solutons. You stidiec posta es for a partcular rodel of renyerator and you complot the foroformation for demandas depicted in tha table belon Demand per week Frobability 0 0,40 0,20 0,15 120 The lead-time, in week, is described by the following distribution Losdime (weeks) Probability 0,15 0,35 0,50 Space is at a premium in the organisations warehouse and nocided to order 10 of the cens every tire an order is placed Studying hancial statements, you determined the holding cast to te Ri per wees for each unit that is left in invertory at the end of each week. You have Determined the stock out cost to be R40 per stock out. A company poday cctates an order must be placed when tha stock level reached 2 units at the end of the week. To advise management you are required to: 2. Construct the cumut ve probability table for cemand. (6) b. Construct the sumulative probability table for lead-time (4) [TURN OVER) OPR3715 JAN/FEB 2019 c. Simulate 11 weeks of operations Curing there are currently 5 unts in inventory. Use the following random number sets for your must on: Demand 52: 37: 2, 69; 9; 6, 33; 5, 12; 90 Lead-time: 06, 63 (11 d Fird the weekly stack out cost as wel as the weekly tolal holong cost. 191 [25 2 QUESTION 1 You are empoyed as all lastral Engine by an organisation that sels and services several brands of major app ances In recent times the organisaton expe:ienced several stock outs. I tha situation cananyes to an extended period, the impact on the organisations profility could be severe. The problem was alloceed to you for investgation and finding possible solutons. You stidiec posta es for a partcular rodel of renyerator and you complot the foroformation for demandas depicted in tha table belon Demand per week Frobability 0 0,40 0,20 0,15 120 The lead-time, in week, is described by the following distribution Losdime (weeks) Probability 0,15 0,35 0,50 Space is at a premium in the organisations warehouse and nocided to order 10 of the cens every tire an order is placed Studying hancial statements, you determined the holding cast to te Ri per wees for each unit that is left in invertory at the end of each week. You have Determined the stock out cost to be R40 per stock out. A company poday cctates an order must be placed when tha stock level reached 2 units at the end of the week. To advise management you are required to: 2. Construct the cumut ve probability table for cemand. (6) b. Construct the sumulative probability table for lead-time (4) [TURN OVER) OPR3715 JAN/FEB 2019 c. Simulate 11 weeks of operations Curing there are currently 5 unts in inventory. Use the following random number sets for your must on: Demand 52: 37: 2, 69; 9; 6, 33; 5, 12; 90 Lead-time: 06, 63 (11 d Fird the weekly stack out cost as wel as the weekly tolal holong cost. 191 [25