The daily demand is given by the following probability distribution:

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

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

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

Table B: Random Digit Assignment for Lead Time

| Lead Time | Probability | Cumulative Prob | Random Digit Assignment | | 1 | 0.36 | 0.36 | 1- 36 | | 2 | 0.42 | 0.78 | 37 - 78 | | 3 | 0.22 | 1.00 | 79 - 00 |

The random digit for lead time for first cycle is given by 46. Mapping it (46) to table B gives a lead time of 2 days. Hence two random digits are required for demand (4,5)

After mapping, these R.D. for demand from table A, if gives demand of '3' for both random digits. So, lead time demand for first cycle is b(3+3). In this way, lead time demand is calculated for remaining cycles and given Table 'C'.

Table 'C': Simulation table for Lead Time Demand