Question: Assignment 5 : Using Simulations for Inventory ManagementImagine you are the manager of a small supermarket, and you need to determine how much of a
Assignment : Using Simulations for Inventory ManagementImagine you are the manager of a small supermarket, and you need to determine how much of a popular brand of breakfast cereal to stock on your shelves each week to maximize profit while minimizing waste. The cereal has a shelf life of only ten days. Therefore, you plan on holding theinventory only for a maximum of a week.The weekly demand for this cereal follows the probability distribution below:Demand Boxes ProbabilityEach cereal box costs $ and you sell it for $ Any unsold cereal boxes at the end of the week are sold for $ per box.Your task is determining the optimal number of cereal boxes to stock on your shelves at the beginning of each week to maximize your profit over a week simulation period. Consider the costs, demand probabilities, and selling prices when making your decision.Please conduct the simulation for weeks and present your findings in an MS Excel file. Include relevant calculations and explanations to support your recommendation for the optimal stocking quantity.
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