Sheet 3

Manually solve the inventory simulation problem (given in book) using the following modifications.

- Demand is represented by a uniform probability distribution ranging from 50 till 150 (units).

- Run the simulation 3 times, in order to try the following 3 values for Q:

50

100

150

The length of each simulation run is 5 months.

In each run, use the following 5 random numbers to generate random samples for Demand.

0.88 0.11 0.55 0.77 0.33

Beside the modifications listed above, use all the assumptions indicated in the book.

Required:

For each value of Q, compute the two output measures.

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Each student must submit the answer of sheet 3.

The deadline is Friday 26th of March 2010.

You send your answer as an attached pdf file to the following email:

sheet_no3@ymail.com

Recall to put your name and ID no. in the first page of the pdf file.

N.B. To convert any document into a pdf file you can use the following free SW:

http://www.cutepdf.com/download/CuteWriter.exe