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A firm sells bulk rolls of newsprint.

The daily demand is given by the following probability distribution:

Daily Demand (Rolls) 3 4 5 6
Probability 0.20 0.35 0.30 0.15

Lead time is a random variable given by the following distribution:

Lead Time (Days) 1 2 3
Probability 0.36 0.42 0.22

Determine the lead-time demand for 5 cycles of simulation. Random digits for lead time and demand are as follows:

R.D for Lead Time 46 75 86 27 63
Probability 4 5 4 5 6 3 4 4 6 4
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Using the probability of demand, we can assign random digits to demand, similarly, we can assign random digits to lead time by using the probability to lead time.

Table A: Random Digit Assignment for Daily Demand

Daily Demand Probability Cumulative Prob Random Digit Assignment
3 0.20 0.20 1 - 20 …

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