Question 4. Solve the following inventory problem using the simulation approach.

A supermarket sells a specific brand of laptop and earns a revenue of AED 500 per laptop. It incurs a monthly holding cost of AED40 per laptop if a stocked laptop 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 AED50 for a laptop. The store has a stocking policy of 210 laptops a month. The demand for laptops is normally distributed with a mean of 200 and a standard deviation of 50.

Month	1	2	3	4	5	6	7	8	9	10	11	12	13	14
Random numbers	0.87	0.24	0.01	0.6	0.08	0.43	0.51	0.12	0.15	0.14	0.84	0.93	0.78	0.46

a) Using the given random numbers and other parameters, simulate the operation for 14 months and provide your simulation output below. (Also upload your Excel file)

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

c) What is the standard deviation (sample) of the profit?

d) What is the service level?

e) Does the service level acceptable to the supermarket? If yes/no, explain why? Why not?

f) To achieve a service level of 95%, how many laptops does the company stock monthly? (Hints: use goal-seek).

g) If the supermarket aims for an average monthly profit of 100,000, what price should the supermarket charge per laptop to achieve this profit?

h) What do you conclude about the status of the supermarket? What recommendations do you provide to improve the supermarket's performance?

PLEASE READ THE QUESTION CAREFULLY AND USE THE CORRECT METHOD