Question: help me with e please. i dont get the question huhu The daily demand for a product produced by Company ABC follows the probability distribution

help me with e please. i dont get the question

help me with e please. i dont get the question huhu

The daily demand for a product produced by Company ABC follows the probability distribution shown below: 13 15 17 Demand 12 14 16 Probability 0.05 0.15 0.25 0.35 0.15 0.05 The lead time (days until delivery) is probabilistic and follows the following distribution: Lead time 1 2 3 4 Probability 0.20 0.30 0.35 0.15 The inventory is examined every operation day. The company has determined that an order for 50 units of the product will be placed whenever the inventory level reaches 10 units or less by the end of the day. The inventory carrying cost is estimated to be RM 0.20 per unit per day and is charged on the units in inventory at the end of the day. A stockout costs RM 1 for every short unit. The cost of ordering is RM 10 per order. The inventory manager has to evaluate the company's current inventory policy using simulation. a) Conduct a 10-day simulation for the inventory manager assuming that the new order just arrived at beginning of the day. Use random numbers given below. Demand: 69, 92, 13, 25, 34, 64, 84, 31, 21, 91 Lead time: 06, 63, 57 b) Calculate the average daily ending inventory, average lost sales and average number of orders placed c) Compute the daily holding cost, daily stockout cost and daily order cost. d) If there are 200 working days in year, find the total yearly inventory cost for the company. e) Is the total yearly inventory cost above suitable to represent the company's inventory policy cost? Explain. The daily demand for a product produced by Company ABC follows the probability distribution shown below: 13 15 17 Demand 12 14 16 Probability 0.05 0.15 0.25 0.35 0.15 0.05 The lead time (days until delivery) is probabilistic and follows the following distribution: Lead time 1 2 3 4 Probability 0.20 0.30 0.35 0.15 The inventory is examined every operation day. The company has determined that an order for 50 units of the product will be placed whenever the inventory level reaches 10 units or less by the end of the day. The inventory carrying cost is estimated to be RM 0.20 per unit per day and is charged on the units in inventory at the end of the day. A stockout costs RM 1 for every short unit. The cost of ordering is RM 10 per order. The inventory manager has to evaluate the company's current inventory policy using simulation. a) Conduct a 10-day simulation for the inventory manager assuming that the new order just arrived at beginning of the day. Use random numbers given below. Demand: 69, 92, 13, 25, 34, 64, 84, 31, 21, 91 Lead time: 06, 63, 57 b) Calculate the average daily ending inventory, average lost sales and average number of orders placed c) Compute the daily holding cost, daily stockout cost and daily order cost. d) If there are 200 working days in year, find the total yearly inventory cost for the company. e) Is the total yearly inventory cost above suitable to represent the company's inventory policy cost? Explain

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