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

question 33

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.

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Definitions:

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods based on the level of satisfaction (utility) they provide.

Consumption

The action of using up a resource or goods and services being used by consumers.

Saving

The portion of income not spent on current consumption but reserved for future use.

Total Income

The aggregate amount of income received by an individual or household from all sources before taxes or deductions.