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PROBLEM C: A SIMULATION PROBLEM

Use simulation techniques to solve the following problem on inventory management:

Consider the company in Task 3 planning its inventory system over the next n months. The sizes of the demands at each point of time, D ( t ), are IID random variables (independent of when the demands occur), and distributed uniformly within the range [0, 100]. At the beginning of each month, the company reviews the inventor level and decides how many items to order from its supplier. As before, if the company orders Z items, it incurs a cost of K+iZ, where K=35 is the setup cost and i=4 is the incremental cost per item ordered. (If Z=0, no cost is incurred.) When an order is placed, the time required for it to arrive (lead time) is 1 month. The company uses a stationary (s,S) policy to decide how much to order, i.e., Z(t)={SI(t)0ifI(t)