Jays Office Supplies sells Printers, which it orders from Brands mart Inc in . Because of shipping and handling costs, each order must be for 5 printers. Because of the time it takes to receive an order, the company places an order every time the present stock drops to 5 Printers. It costs $50 to place an order. It costs the company $500 in lost sales when a customer asks for a Printer and the warehouse is out of stock. It costs $100 to keep each Printer stored in the warehouse. If a customer cannot purchase a Printer when it is requested, the customer will not wait until on
Jays Office Supplies sells Printers, which it orders from Brands mart Inc in . Because of shipping and handling costs, each order must be for 5 printers. Because of the time it takes to receive an order, the company places an order every time the present stock drops to 5 Printers. It costs $50 to place an order. It costs the company $500 in lost sales when a customer asks for a Printer and the warehouse is out of stock. It costs $100 to keep each Printer stored in the warehouse. If a customer cannot purchase a Printer when it is requested, the customer will not wait until one comes in but will go to a competitor. The following probability distribution for demand for Printer has been determined:
Questions
1.Simulate CWD 's ordering and sales policy for 20 weeks
2. Compute the average cost of the policy
PLEASE NOTE I SENT THIS IN ALREADY BUT I REALIZED I LEFT OUT SOME VITAL INFORMATION AND AGAIN THIS IS NOT FROM ANOTHER SITE.
![Month
Demand per week
0
1
2
3
OI
Probability
4
5
6
The time required to receive an order once it is placed (lead time) has the following probability
distribution:
UR
.05
.10
AI
.20
.35
Time to receive order (WK)
Probability
1
.60
2
.20
3
.20
The company has 3 Printers in stock. Orders are ways received at the beginning of the week. A lead
time of 2 weeks imply that an order placed in week one will arrive in week 4.
USE THE FOLLOWING HEADINGS
.20
.05
.05
RN D DF EI SO Order RN Leadtime IC SOC OC
TC](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ab72e96-5776-419c-aa03-919faa08cc83%2Ff46da541-0094-480e-8a22-bc2061ac225f%2Fhqwfpw_processed.jpeg&w=3840&q=75)
![Demand .15 .84 .16 .12 55 .16
Lead time 47 .74 35 .56 .64 21
.84 .63
.55
.01
33
40
57 .18
.26
23
.52
37
.70
R
.56
.99
.16
31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ab72e96-5776-419c-aa03-919faa08cc83%2Ff46da541-0094-480e-8a22-bc2061ac225f%2Fehzuvk5_processed.jpeg&w=3840&q=75)
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