The RN for Demand $($in order$)$

$0\mathrm{.}69,0\mathrm{.}73,0\mathrm{.}16,0\mathrm{.}65,0\mathrm{.}01,0\mathrm{.}71,0\mathrm{.}91,0\mathrm{.}99,0\mathrm{.}18,0\mathrm{.}33,0\mathrm{.}65,$

$0\mathrm{.}86,0\mathrm{.}94,0\mathrm{.}39,0\mathrm{.}38,0\mathrm{.}84,0\mathrm{.}45,0\mathrm{.}91,0\mathrm{.}03,0\mathrm{.}81,$

And the RN for Delivery Time $($in order$)$

$0\mathrm{.}64,0\mathrm{.}39,0\mathrm{.}19,0\mathrm{.}34,0\mathrm{.}91,0\mathrm{.}42,0\mathrm{.}25,0\mathrm{.}78,0\mathrm{.}35,0\mathrm{.}10.$

Use the $RN$ only when needed.

Simulate the worksheets:

a$)Q=6,R=3,$ with multiple ordering policy

b$)Q=8,R=4,$ with and without multiple ordering policy.

Using the same costs and RN given, recalculate worksheet as in

handout.

Analysis: Would you expect the optimal Q to be higher or

lower than the values given? Would the optimal $R$ be higher or

lower than the values given? Explain