Question: Consider the simple inventory problem for an assembly part utilized in a production facility. The daily demand D is an exponentially distributed random variable with

Consider the simple inventory problem for an assembly part utilized in a production facility. The daily demand D is an exponentially distributed random variable with a mean of 10 units per day (=0.1). Parts are ordered in a batch of Q units. The total inventory cost (TC) per day is given by the equation as a function of holding and ordering costs as follows:
TC=(ChQ2)+(CaDQ),or,TC=(0.1**Q2)+(12.5**DQ)
based on a holding cost of Ch=0.1$ /unit per day and an ordering cost of C0=12.5$ /order as seen in the equation above. It is required to determine the best order quantity, which is a decision variable. Simulate this system for 5 consecutive days to determine average total inventory cost for the order quantities of Q=40,Q=50 and Q=60 units and indicate the best order quantity. Use the second row of uniform random numbers table below to generate the random demand (starting from 0.180 as given) for your (you may use the same random numbers for evaluating Q=40,Q=50 and Q=60). Use the table below.
a) Determine the best order quantity based on your results. Use two digits accuracy.
\table[[Ui,Di,\table[[TC for],[Q=40
 Consider the simple inventory problem for an assembly part utilized in

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