CB2011 Solving Business Problems with Spreadsheet Modeling Online Assignment 3 (6% weight) Time allowed: 60 minutes (55 minutes + 5 minutes additional time for uploading file) Instructions: Hand-write your answers on a blank paper and take a photo of your solutions. Save as Assignment3- XXXXXXXX.pdf or Assignment3-XXXXXXXX.jpg where XXXXXXXX is your student id number. The stock of an item is checked at the beginning of each month and production is made so that: Production size = 100 - initial stock Due to limited resources, the required production can only be completed at the beginning of the next month. Demand follows the pattern: 10 20 30 40 50 60 70 Monthly demand Probability 0.1 0.15 0.25 0.25 0.15 0.05 0.05 Assuming that there are 40 units in stock at the beginning of the first month. Random number generated between 00 and 99 to simulate the demand are: Demand: 63, 55, 56, 39, 97, 15, 84, 52 a. Use the random numbers provided to simulate the system for 8 months. Determine the initial stock, production size, demand, and closing stock for each of the 8 months. b. What is the probability of being out of stock? C. If each item remains at the end of the month costs $10 for storage. What is the average monthly storage cost