Question 1. Use the simulation approach and solve the inventory problem

A supermarket sells a specific brand mobile and earns a revenue of AED 500 per mobile. It incurs a holding cost of AED30 per mobile per month if a stocked mobile is not sold. Holding cost is a portion of the rent, insurance, and others. If there is a shortage, the market assigns a goodwill cost of AED40 a mobile. The store has a stocking policy of 180 mobiles a month. The demand for mobile is normally distributed with a mean of 200 and a standard deviation of 20.

a) Using the given random numbers and other parameters, simulate the operation for 13 months and provide your simulation output below.

Mont h	Rando m Numbe	Dema nd	Steck	Sales (sold)	Revenue	Holding cost	Shorts , . cost	pi 0 i i i
1	0.20
2	0.35
3	0.16
4	0.25
5	0.84
6	0.30
7	0.40
8	0.71
9	0.89
10	0.72
11	0.60
12	0.71
13	0.95

b) What is the net profit of the supermarket? (average monthly profit)