Essay on HW2 Questions

Submitted By kunal_jadhav
Words: 596
Pages: 3
Open Document
ISE553 MODELLING AND ANALYSIS OF SUPPLY CHAINS
Spring 2014
Dr. Reha Uzsoy
Homework 2 - due 11:55PM, Tuesday January 27, 2015
Use the Excel workbook Spring2012HW2Data.xlsx to solve the following problems: Problem 1: Demand for a seasonal inventory item is estimated to follow a Gamma distribution with mean 150 units and standard deviation 50 units. Due to its seasonal nature and long delivery lead time, the item must be ordered before demand can be observed, and any inventory remaining at the end of the season must be disposed of at a discount. The product sells for $100 per unit, and is purchased for $40 per unit.
Excess inventory will be sold at the end of the season at a discounted price of $10 per unit. a) Compute the parameters of the Gamma distribution that defines the demand, showing your work in a text box on the title page of your submission per the Instructions for Submission at the end of this assignment.
b) Compute the order quantity that minimizes the expected cost of operating this inventory system by inserting the necessary formulas in the indicated area of the
Problem1 worksheet. Use the More Functions button in the Formulas tab to locate the formulas you need for the Gamma distribution.
Problem 2: a) Develop an Excel simulation in the indicated area of the Problem2 worksheet that will simulate 1000 demand observations, computing the quantities indicated in the headings in column H through O.
b) In a separate worksheet named Problem2Histogram, create a histogram of the realized profit observed in your simulation. Use bin sizes from 1000 to 12000 in increments of 250, and explain the behavior observed at the high end of the histogram what is causing this pattern to occur in the histogram?

Problem 3: Now assume that the demand for the inventory item in Problem 1 is given by the sum of three Gamma random variables, each having the parameters calculated in Problem 1a).
a) Create a worksheet named Problem 3, and develop an Excel simulation to determine the critical fractile of the demand distribution based on 1000 replications of the random variable of interest. Do NOT simulate the inventory system seeking the order quantity that minimized expected profit; your task is to use simulation to compute the value of the critical fractile. You should set the Calculation Options to Manual while doing this problem, since Excel will generate new random numbers each
Show More

Related Documents: Essay on HW2 Questions

Questions On Kinematics

1 `Physucks Study Guide Quiz 1: 1. Things Everyone Should Know ● Units ­ see dimensional analysis and measurement sections ● Kinematics ○ Kinematics is the study of the relationships between quantities that are involved in the study of motion. ○ Motion has to do with: Displacement, Velocity, and Acceleration. ○ Primary notion is that there are forces ○ Forces represent the effect of other bodies on the body whose motion is under study. ○ Energy = m g h ○ Work = Total Energy ● Algebra…

Words 2721 - Pages 11

Syllabus BUSI411 Mod 3 Spring 2015 Essay

deepak_jena@kenan-flagler.unc.edu | office hours: on request Course Description Course Overview. Why are some firms more successful than others? In this course, we will analyze the sources of success and profitability among firms in order to answer this question. Over the course of eight weeks, we will focus on the three building blocks of a good strategy design. The first building block concerns industry analysis. You will learn to think carefully about how the nature of production, characteristics of demand…

Words 5127 - Pages 21

Syllabus: Anthropology and Pts Essay

available in the classroom at least 5 days/week. I am nearly always taking a day off to rest on Sunday and occasionally take all or part of either Friday or Sat off as well. Please ask questions about assignments as soon as they are assigned. If you wait until the last moment, you may not be able to get an answer to your question in less than 48 hours. Table of Contents |Course Description (Catalog)…

Words 6538 - Pages 27