Question: PLEASE ANSWER ALL THE QUESTIONS Question 5 Hitec Appliance Centre sells and services several brands of major appliances. The following tables give the distributions of

PLEASE ANSWER ALL THE QUESTIONS
Question 5 Hitec Appliance Centre sells and services several brands of major appliances. The following tables give the distributions of weekly demand and lead time for a particular refrigerator model: Table 3 Table 4 Weekly demand Probability Lead Time (week) Probability 0 0.20 0.15 1 0.40 2 2 0.35 2 0.20 3 Is 0.50 3 0.15 4 0,05 Based on the cost considerations as well as storage space, the company has decided to order 10 units each time an order is placed the holding cost is RM1 per week for each unit that is left in inventory at the end of the week. The stock-out cost has been set at RM 40 per unit short. The company has decided to place an order whenever there is only one refrigerator left at the end of the week. Simulate 10 weeks of operation, assuming there are currently 5 units in inventory Determine the weekly stock-out cost and the weekly holding cost for the company. Use the following random numbers: 81 08 96 63 04 22 98 51 75 99 84 90 42 23 Demand 40 Lead Time: 14 (15 marks)Step by Step Solution
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