Production/Oper MANAGEMENT

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nyanfre

Business Finance

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Average daily sales of muffins in Michael’s store is 8 units. The actual number of sales each day is either 7, 8, or 9, with probabilities 0.3, 0.4, or 0.3, respectively. The lead time for delivery averages 4 days, although the time may be 3, 4, or 5 days, with probabilities of .2, .6, and .2. Michael plans to place an order when the inventory level drops to 32 units (based on the average demand and average lead time). Michael orders 50 muffins at a time. The following random numbers have been generated:

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Appendix I: Module F – Simulation • • • • • Open the Excel file from previous chapters called “ch12 – Your Name”. Create a new worksheet named “Appendix I”. Insert a text box explaining your answer and recommendation. Name and show all variables. Must use Excel formulas when calculating your answers. Take all numbers to two decimals. Average daily sales of muffins in Michael’s store is 8 units. The actual number of sales each day is either 7, 8, or 9, with probabilities 0.3, 0.4, or 0.3, respectively. The lead time for delivery averages 4 days, although the time may be 3, 4, or 5 days, with probabilities of .2, .6, and .2. Michael plans to place an order when the inventory level drops to 32 units (based on the average demand and average lead time). Michael orders 50 muffins at a time. The following random numbers have been generated: Set 1: 60, 87 Set 2: 52, 78, 13, 06, 99, 98, 80, 09, 67, 89, 45, 54, 81, 79 Use set 1 to generate lead times and set 2 to simulate daily demand. Simulate two weeks and determine how often the shop runs out of stock before an order arrives. Assume beginning inventory of 50 muffins. Use the simulation to calculate the following: compare average demand during simulated period to theoretical averaged demand. Compare average lead time during the simulated period to theoretical average lead time. Calculate average ending inventory and average number of lost sales.
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Average daily sales of muffins in Michael’s store is 8 units. The actual number of sales ea
although the time may be 3, 4, or 5 days, with probabilities of .2, .6, and .2. Michael plan
Michael orders 50 muffins at a time. The following random numbers have been generate
Set 1: 60, 87
Set 2: 52, 78, 13, 06, 99, 98, 80, 09, 67, 89, 45, 54, 81, 79

Use set 1 to generate lead times and set 2 to simulate daily demand. Simulate two week
Use the simulation to calculate the following: compare average demand during simulate
lead time. Calculate average ...


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