The demand for refrigerators at an appliance store adheres to the following probability distribution: The store orders 4 refrigerators per day to have in stock to meet demand.They are trying to maintain low inventory levels.The holding cost is $5/unit/day.The ordering cost is $20 per order.The lost sale cost is $10/unit.A simulation is to be developed to estimate the average daily inventory cost over 5 days.The table below shows the random numbers to be used for refrigerator demand and lead time on orders: Assuming that beginning inventory is equal to 5 with no prior orders in transit,what is the overall average daily cost of inventory for the 5 days?

Question

The demand for refrigerators at an appliance store adheres to the following probability distribution:  The store orders 4 refrigerators per day to have in stock to meet demand.They are trying to maintain low inventory levels.The holding cost is $5/unit/day.The ordering cost is $20 per order.The lost sale cost is $10/unit.A simulation is to be developed to estimate the average daily inventory cost over 5 days.The table below shows the random numbers to be used for refrigerator demand and lead time on orders:  Assuming that beginning inventory is equal to 5 with no prior orders in transit,what is the overall average daily cost of inventory for the 5 days?

Quizplus · Accepted Answer

The Answer of The demand for refrigerators at an appliance store adheres to the following probability distribution:  The store orders 4 refrigerators per day to have in stock to meet demand.They are trying to maintain low inventory levels.The holding cost is $5/unit/day.The ordering cost is $20 per order.The lost sale cost is $10/unit.A simulation is to be developed to estimate the average daily inventory cost over 5 days.The table below shows the random numbers to be used for refrigerator demand and lead time on orders:  Assuming that beginning inventory is equal to 5 with no prior orders in transit,what is the overall average daily cost of inventory for the 5 days?

The Demand for Refrigerators at an Appliance Store Adheres to the Following