Question 71) A local computer store is running a sale on the first 99 flat pane

71) A local computer store is running a sale on the first 99 flat panel monitors sold. There is an equally likely chance of 0-99 units being sold. Each monitor cost $250, and profit is $10 per monitor sold. That is, profit equals -$250 + $10X, where X = the number of monitors sold. The mean amount you would expect to sell is 49.5 units.

(a) Calculate the expected profit.

(b) Simulate the sale of 10 items, using the following double digit random numbers: 47, 77, 98, 11, 02, 18, 31, 20, 32, 90.

(c) Calculate the average profit in (b) above, and compare with the results of (a) above.

72) 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?

73) A computer help desk receives new daily customer arrivals according to the following probability distribution:

The number of customers that the help desk has the capability to serve per day is based on the following probability distribution:

If the number of arrivals exceeds the # served capability, the customers will receive top priority the next day. The random numbers drawn for a 5-day simulation are as follows:

What will the average number of delays be for the 5-day simulation?

74) What are the seven steps of simulation?

75) List the major advantages of simulation techniques.

76) List the major disadvantages of simulation techniques.

77) Explain what is meant by a Monte Carlo simulation.

78) Explain what is meant by operational gaming and give one example.

79) Describe the conditions when simulation is useful for inventory analysis.

Answer: Simulation is useful when demand and lead time are probabilistic.

Diff: 2

Topic: SIMULATION AND INVENTORY ANALYSIS

80) Describe the conditions when simulation is useful for queuing analysis.

81) What is the difference between verification and validation?

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