Question: Problem 1 (40 points) Loebuck Grocery orders milk from a dairy on a weekly basis. The manager of the store has developed the following probability

Problem 1 (40 points) Loebuck Grocery orders milk

Problem 1 (40 points) Loebuck Grocery orders milk from a dairy on a weekly basis. The manager of the store has developed the following probability distribution for demand per week (in cases): Demand (cases) Probability .20 .25 .40 18 .15 1.00 The milk costs the grocery $10 per case and sells for $16 per case. The carrying cost is $0.50 per case per week, and the lost-sale cost is $1 per case. Simulate the ordering system for Loebuck Grocery for 20 weeks. Use a weekly order size of 16 cases of milk and compute the average weekly profit for this order size. 0.031882818 0.024497634 0.937862238 0.318404225 0.406881466 0.073650375 0.451326896 0.10563976 0.541819095 0.763918318 0.294294743 0.547343992 0.262621216 0.683804435 0.716187336 0.794587568 0.538008286 0.320350545 0.010649332 0.153098064 (use this 20 Rand() data to generate the weekly demand you need) 5616 17

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