Question: A container liner company do not want to be in a stockout situation because of the non-availability of the container type that the customer wants.

A container liner company do not want to be in a stockout situation because of the non-availability of the container type that the customer wants. They count their inventory on hand and create the below table:

Container Type

Capacity

20”

40”

Standard

3

3

Reefer

2

2

Open Top

1

1

Daily demand for container changed according to below table:

Container TEU

Probability

3

8%

4

7%

5

20%

6

26%

7

24%

10

15%

Demand for 20” container probability is 45%, and also you can find container type demand probabilities below:

Container Type

Demand

20”

40”

Standard

30%

50%

Reefer

30%

20%

Open Top

40%

30%

Simulate the system for 10 days. The company believes that the stockout rate cannot be more than 5%. In your opinion, if the company decides to purchase new containers which type of container must they buy and how many units?

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