Question: Demand per Week Probability Cumulative probability Random number mapping 0 0.05 0.05 00-04 1 0.10 0.15 05-14 2 0.20 0.35 15-34 3 0.35 0.70 35-69
| Demand per Week | Probability | Cumulative probability | Random number mapping |
| 0 | 0.05 | 0.05 | 00-04 |
| 1 | 0.10 | 0.15 | 05-14 |
| 2 | 0.20 | 0.35 | 15-34 |
| 3 | 0.35 | 0.70 | 35-69 |
| 4 | 0.20 | 0.90 | 70-89 |
| 5 | 0.05 | 0.95 | 90-94 |
| 6 | 0.05 | 1.00 | 95-99 |
CWD Office Supplies sells Printers, which it orders from Kajama Inc in Japan. Because of shipping and handling costs, each order must be for 5 printers. Because of the time it takes to receive an order, the company places an order every time the present stock drops to 5 Printers. It costs $50 to place an order. It costs the company $500 in lost sales when a customer asks for a Printer and the warehouse is out of stock. It costs $100 to keep each Printer stored in the warehouse. If a customer cannot purchase a Printer when it is requested, the customer will not wait until one comes in but will go to a competitor.The following probability distribution for demand for Printer has been determined:
|
Lead Time: Time to Receive an Order (wk) |
Probability | Cumulative Probability | Random Number Mapping |
|---|---|---|---|
| 1 | 0.60 | 0.60 | 00-59 |
| 2 | 0.20 | 0.80 | 60-79 |
| 3 | 0.20 | 1.00 | 80-99 |
Complete the following Simulation of CWD's Ordering and Sales Policy for 20 Weeks
| Demand | .15 | .84 | .16 | .12 | .55 | .16 | .84 | .63 | .33 | .57 | .18 | .26 | .23 | .52 | .37 | .70 | .56 | .99 | .16 | .31 |
| Lead time | .47 | .74 | .35 | .56 | .64 | .21 | .55 | .01 | .40 |
| Month | OI | U | R | A | I | RN | D | D | F | EI | SO | order | RN | lead-time | IC | SOC | OC | TC |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 3 | 0.15 | ||||||||||||||||
| 2 | 0.84 | |||||||||||||||||
| 3 | 0.16 | |||||||||||||||||
| 4 | 0.12 | |||||||||||||||||
| 5 | 0.55 | |||||||||||||||||
| 6 | 0.16 | |||||||||||||||||
| 7 | 0.84 | |||||||||||||||||
| 8 | 0.63 | |||||||||||||||||
| 9 | 0.33 | |||||||||||||||||
| 10 | 0.57 | |||||||||||||||||
| 11 | 0.18 | |||||||||||||||||
| 12 | 0.26 | |||||||||||||||||
| 13 | 0.23 | |||||||||||||||||
| 14 | 0.52 | |||||||||||||||||
| 15 | 0.37 | |||||||||||||||||
| 16 | 0.70 | |||||||||||||||||
| 17 | 0.56 | |||||||||||||||||
| 18 | 0.99 | |||||||||||||||||
| 19 | 0.16 | |||||||||||||||||
| 20 | 0.31 |
- Complete CDWs ordering and sales policy for 20 weeks
- Compute the average cost of the policy
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