Question: Question 13 0/ 1 pts To simulate the inventory management of a particular product, the demand is assumed to be between 10 and 50 units

Question 13 0/ 1 pts To simulate the inventory

Question 13 0/ 1 pts To simulate the inventory management of a particular product, the demand is assumed to be between 10 and 50 units with probabilities as shown in cells B4 through B8 below. The policy is to order 40 units when the inventory level drops below the reorder point of 15 units at the start of a period. Suppose that inventory orders arrive immediately, and that negative inventory levels are allowed. This simulation takes place over 40 weeks. B D E G H Probability 0.20 Demand 10 20 0.25 F(x) 0.20 0.45 0.75 0.90 1.00 Fx) 0 0.20 0.45 0.75 0.90 30 0.30 0.15 0.10 50 40 50 units 1 Inventory Simulation 2 3 Demand 4 10 5 20 6 30 7 40 8 9 units 10 11 Order Quantity 12 Reorder Point 13 14 Period 15 16 2 2 17 3 18 4 19 5 20 6 40 units 15 units Holding Cost Shortage Cost $5 per week $10 per week Starting Inv Inv Cost 30 -10 -10 0 10 Demand 40 40 30 30 30 10 Order Qty 0 40 40 40 40 0 Ending Inv -10 -10 0 10 20 10 20 There is a holding cost of $5 per unit-week and a shortage cost of $10 per unit-week. These costs are computed based on the ending inventory. What formula should be entered in cell F15, so that the cost can be computed for each of the forty weeks? =IF(E15>0, E15*F11, E15*F12) =IF(E15

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