Question: Using excel. Demand for milk is stochastic and uniformly distributed between 1 and 1 0 gallons each day ( only whole gallons can be sold
Using excel. Demand for milk is stochastic and uniformly distributed between and gallons each day only whole gallons can be sold The milk you sell lasts for days in the store and can be sold to customers on both the first and second day of its shelf life. You reorder milk from the dairy farm at the end of every day to reach a target stocking quantity in the store at the beginning of the next day milk delivery happens overnight This is the same as a base stock inventory policy. You sell milk to customers for $ a gallon, purchase it from the dairy farm for $ a gallon, and if there are any leftover after the second day, sell it to a cheesemaker for $ a gallon. Run a simulation with trials to identify: a the quantity of milk you should start each day with ie the base stock level to maximize expected profit b confidence intervals for average profit at your chosen quantity
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