Question: Using excel how do i solve this problem. FOLLOW THE LEAD TIKE Lead-time demand may occur in an inventory system when the lead time is

Using excel how do i solve this problem.
FOLLOW THE LEAD TIKE Lead-time demand may occur in an inventory system when the lead time is other than instantaneous. The lead time is the time from placement of an order until the order is received. In a realistic situation, lead time is a random variable. During the lead time, demands also occur at random. Lead-time demand can therefore be considered a random variable defined as the sum of the demands over the lead time, or ' where i is the time period of the lead time, i = 0, 1, 2, 3,...;D; is the demand during the ith time period; Tis the lead time. You're interested in building a distribution of lead-time demand by simulating many cycles of lead time and drawing a histogram based on the results. A firm sells bulk rolls of newsprint. The daily demand is given by the following probability distribution: Daily Demand (Rolls) Probability 3 0.20 4 0.35 5 0.30 6 0.15 The lead time is the number of days from placing an order until the firm receives the order from the supplier. In this instance, lead time is a random variable given by the following distribution: Lead Time (Days) Probability 3 0.22 0.36 0.42 The tables below show the random digit assignment for demand and for lead times: Daily Demand 3 Cumulative Probability 0.20 0.55 0.85 1.00 Probability 0.20 0.35 0.30 0.15 Random-digit Assignment 01-20 21-55 56-85 86-00 4 5 6 Lead Time 1 2 3 Probability 0.36 0.42 0.22 Cumulative Probability 0.36 0.78 1.00 Random-digit Assignment 01-36 37-78 79-00 You can choose either AnyLogic or Excel to run this simulationStep by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
