A Warehouse Manager Needs to Simulate the Demand Placed on a Product

question 48

Essay

A warehouse manager needs to simulate the demand placed on a product that does not fit standard models. The concept being measured is "demand during lead time," where both lead time and daily demand are variable. The historical record for this product suggests the following probability distribution. Convert this distribution into random number intervals.
$$\begin{array}{l}\text { Demand during lead time Probability }\\\begin{array} { | c | c | } \hline 100 & .02 \\\hline 120 & .15 \\\hline 140 & .25 \\\hline 160 & .15 \\\hline 180 & .13 \\\hline 200 & .30 \\\hline\end{array}\end{array}$$

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Definitions:

Number Of Sales

quantifies the total sales transactions completed within a specific period, often used to gauge business performance.

Bonus

A form of additional compensation given to an employee or workers, above their normal pay, for achieving a certain level of performance or for special occasions.

Commission

A fee paid to an agent or employee for facilitating a sale or transaction, typically calculated as a percentage of the sale.

Car Dealer

An organization that specializes in selling new or pre-owned automobiles directly to consumers, operating under a dealership agreement with a car manufacturer or its sales division.