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A homeware shop is evaluating its ordering policy for washing machines. Observed data shows that weekly demand for washing machines is highly variable. It has been found to follow the following distribution: Demand Probability 0 0.1 1 0.3 2 0.5 3 0.1 b) A separate use of random numbers has yielded the demands shown in the table below. The homeware shop regularly order washing machines. Their order quantity policy is outlined in the table below for a 12 week period. Assume that in Week 1, 5 washing machine units have just arrived and prior to this all orders had been fulfilled. Week 6 7 8 9 10 11 12 1 2 3 4 5 1 2 2 0 1 005 000 3 2 2 1 2 Demand Order Quantity 1 2 0 0 5 0 5 0 Orders are received at the beginning of the week after the order is placed (e.g. an order placed in Week 3 will be received at the start of Week 4). If weekly demand cannot be met, it is fulfilled as first priority when the next order is delivered, this is known as 'back ordering'. Each week, the stockholding cost per washing machine is estimated at 30 and the backordering cost per unit is estimated as 25 per unit. Simulate the cost of the ordering policy for 12 weeks. What is the total cost? (40% marks) A homeware shop is evaluating its ordering policy for washing machines. Observed data shows that weekly demand for washing machines is highly variable. It has been found to follow the following distribution: Demand Probability 0 0.1 1 0.3 2 0.5 3 0.1 b) A separate use of random numbers has yielded the demands shown in the table below. The homeware shop regularly order washing machines. Their order quantity policy is outlined in the table below for a 12 week period. Assume that in Week 1, 5 washing machine units have just arrived and prior to this all orders had been fulfilled. Week 6 7 8 9 10 11 12 1 2 3 4 5 1 2 2 0 1 005 000 3 2 2 1 2 Demand Order Quantity 1 2 0 0 5 0 5 0 Orders are received at the beginning of the week after the order is placed (e.g. an order placed in Week 3 will be received at the start of Week 4). If weekly demand cannot be met, it is fulfilled as first priority when the next order is delivered, this is known as 'back ordering'. Each week, the stockholding cost per washing machine is estimated at 30 and the backordering cost per unit is estimated as 25 per unit. Simulate the cost of the ordering policy for 12 weeks. What is the total cost? (40% marks)