1. Lead time for a stock item is uniformly distributed with a mean of 7 days +-2 days. Daily demand is distributed as follows:

Daily demand	0	1	2	3	4
Probability	0.367	0.368	0.184	0.062	0.019

Determine the lead-time demand for 20 orders cycles (Round off lead time to the closest integer during simulation, and if negative value results, give it a lead time of zero).

2. Estimate, by simulation, the average number of lost sales per week o fan inventory system that functions as follows:
   1. Whenever the inventory level falls to or below 10 units, an order is placed. Only one order can be aoutstanding at a time.
   2. The size of each order is equal to 20-I, where I is the inventory level when the order is placed.
   3. If a demand occurs during a period when inventory leve lis zero, the sale is lost.
   4. Daily demand is normally distributed with a mean of 5 unites and a standard deviation of 1.5 units. (Round off demnds to closest integer during simulation, and if negative results, give it demand of zero).
   5. Lead time is distributed uniformly between zero and 5 days, integers only.
   6. The simulation Will start with 18 units in inventory.
   7. For simplicity, asume that all demands occur noon 12 and that all orders are placed at the same time. Assume further that orders are received at 5:00 p.m. or after demand which occured on that day.
   8. Let the simulation run for 5 weeks.