3. Dumoor Appliance Center sells and services several brands of major appliances. Past sales for a particular model of the refrigerator have resulted in the following probability distribution for...


3. Dumoor Appliance Center sells and services several brands of major appliances. Past<br>sales for a particular model of the refrigerator have resulted in the following probability<br>distribution for demand:<br>DEMAND PER WEEK<br>2 3<br>4<br>Probability<br>0.20<br>0.40<br>0.20<br>0.15<br>0.05<br>The lead time, in weeks, is described by the following distribution:<br>LEAD TIME (WEEKS)<br>2<br>Probability<br>0.15<br>0.35<br>0.50<br>Based on cost considerations as well as storage space, the company has decided to<br>order 10 of these each time an order is placed. The holding cost is $1 per week for each<br>unit that is left in inventory at the end of the week. The stockout cost has been set at $40<br>per stockout. The company has decided to place an order whenever only two<br>refrigerators are left at the end of the week. Simulate 20 weeks of operation for Dumoor<br>Appliance, assuming there are currently 5 units in inventory. Determine what the weekly<br>stockout and weekly holding costs would be for the problem. Use the line 151 to 170 in<br>1st column for the demand and the 2nd column for the lead time.<br>

Extracted text: 3. Dumoor Appliance Center sells and services several brands of major appliances. Past sales for a particular model of the refrigerator have resulted in the following probability distribution for demand: DEMAND PER WEEK 2 3 4 Probability 0.20 0.40 0.20 0.15 0.05 The lead time, in weeks, is described by the following distribution: LEAD TIME (WEEKS) 2 Probability 0.15 0.35 0.50 Based on cost considerations as well as storage space, the company has decided to order 10 of these each time an order is placed. The holding cost is $1 per week for each unit that is left in inventory at the end of the week. The stockout cost has been set at $40 per stockout. The company has decided to place an order whenever only two refrigerators are left at the end of the week. Simulate 20 weeks of operation for Dumoor Appliance, assuming there are currently 5 units in inventory. Determine what the weekly stockout and weekly holding costs would be for the problem. Use the line 151 to 170 in 1st column for the demand and the 2nd column for the lead time.

Jun 09, 2022
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