Every morning he receives fresh cakes and places order for next day. The order quantity for next day is equal to the number of cakes the demanded on previous day. Assuming that he receives 30 cakes on first day and places order for 30 cakes for next day, simulate the system to determine-

1. Average number of cake sold per day.
2. Probability of stock out on any day
3. Average number of unsold cakes per day if he does not sell stale cakes
4. Average profit per day if he earns profit of Rs. 20 per cake and returns unsold cakes next morning with loss of Rs. 10.

Random no. 3244 8857 9516 8058 6047 9504 4554 3172 8699 3584

Mumbai University > Mechanical Engineering > Sem 7 > Operations Research

Marks: 10 Marks

Year: Dec 2015

Demand for cakes sold for 10 days

=20, 40, 40, 30, 30, 40, 30, 20, 40, 20.

Average number of cakes sold per day

$=\dfrac{(20+40+40+30+30+40+30+20+40+20)}{10}=\dfrac{310}{10}=31$

Probability of stock out on any day = 0.7

Average number of unsold cakes per day= $\dfrac{30}{10}=3$ cakes unsold per day.

Average profit per day=$\dfrac{20 \times 20-10 \times 15+30 \times 20 \times 6+20 \times 20-10 \times 15+30 \times 20+20 \times 20-10 \times 15}{10}=\dfrac{4950}{10}$

Average profit per day=495/-