Question: Demand for widgets follow the probability distribution shown: Daily Demand 0 1 2 3 4 Probability 0 . 3 3 0 . 2 5 0
Demand for widgets follow the probability distribution shown:
Daily Demand
Probability
Stock is examined every days the plant is in operation every
day and if the stock level has reached units, or less, an order
for widgets is placed. The lead time days until delivery is
probabilistic and follows the following distribution:
Lead time days
Probability
When the simulation begins, it is the beginning of the week,
widgets are on hand, and no backorders are allowed. Stock is
delivered at the start of the day, ready for sale for that
day. Simulate for weeks of operation of this system. Analyze
the system. Perform additional simulations to determine
the effect on shortages if increases or decreases occur in:
the review period if instead of days it was days, or
days
the reorder quantity Q if instead of units it was higher
or lower and
the reorder point R if instead of units it was higher or lesser
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