QUESTION 3.

Use the Random number table that you received from the class representative or the one attached to Activity eight on your Moodle notes

Thulile Mavuso is the owner of a company conducting deoxyribonucleic acid (DNA) tests in the Kingdom of Eswatini. She is concerned about the number of suspected DNA test kits stock outages occurring in her company. Such stock outs are costly to her business because when clients cannot get tested, they simply walk away and get the service from Thuliles competitors. So, she loses sales since you cannot have back orders in this type of business.

Thulile has been studying her companys policy of ordering DNA kits. She notices that deliveries are instantaneous because the companys supplier is in the same complex. The company policy is to keep a fixed order quantity at 10 kits after every 2 days. The current on hand delivery is 10 test kits and there are no orders pending and the actual number of tests conducted every day can vary. By reviewing her companys sales records for the past several months Thulile determined that the actual DNA test is a random variable that can be described by the following probability distribution:

Kits Sales	1	2	3	4	5	6	7	8	9	10
Probability	0.01	0.02	0.04	0.06	0.09	0.16	0.20	0.22	0.18	0.02

Use a simulation model to evaluate Thuliles current ordering policy for the DNA kits and determine;

a.the average simulated DNA test sales per day for the 25 days [10]

b.the expected sales per day using the expectation theory [5]

c. the companys stock situation from day 1 till the day 25 in terms of lost sales and/or stock outages [10]

Get your random numbers from the attached Table 14.4, drawing the numbers from the 9^th column.