Group 9 - Kylie Foradori and Lauren Jackson

Probability LOWER_LIMIT UPPER_LIMIT Production Cost/Unit

0.35 0 0.35 40
0.15 0.35 0.5 45
0.15 0.5 0.65 50
0.2 0.65 0.85 52
0.15 0.85 1 65

Month Random Number Unit cost

1 0.792800754816179 52
2 0.909809858617344 65
3 0.040478708421611 40
4 0.518867724126598 50
5 0.797546347500307 52
6 0.274085618916972 40
7 0.683218653923914 52
8 0.25839453229524 40
9 0.500649328339482 50
10 0.779581436398786 52
11 0.595973053136425 50
12 0.616155601468902 50
13 0.589411278384305 50
14 0.679778669459554 52
15 0.647920356567115 50
16 0.458939083152047 45
17 0.126835058923283 40
18 0.510946858228902 50
19 0.607364742786289 50
20 0.188586540862613 40
 Group 9 - Kylie Foradori and Lauren Jackson
Mean for Normal Distribution 110
Standard Deviation for Normal 20

Month Random Number Demand Integer Demand

1 0.931963342916462 139.8114846 139
2 0.342292003079507 101.8756829 101
3 0.17808419576429 91.54618515 91
4 0.879694769759108 133.4692463 133
5 0.341801706625289 101.8489819 101
6 0.812890396274061 127.7719585 127
7 0.710656504350842 121.1060727 121
8 0.219746706830597 94.53902107 94
9 0.453298645876642 107.6533682 107
10 0.121309521879916 86.63068981 86
11 0.384706137491393 104.1371249 104
12 0.736566852673486 122.6559376 122
13 0.680926714743011 119.4058356 119
14 0.089115959079766 83.07562117 83
15 0.634661658156091 116.8845106 116
16 0.322164883170942 100.7669284 100
17 0.181049065634761 91.77251177 91
18 0.13882922490624 88.28811071 88
19 0.511858804069586 110.5945999 110
20 0.446723450800466 107.3211211 107
SIMULATING AN INVENTORY POLICY Group 9 - Kylie Foradori and Lauren Jackson

INVENTORY ORDER UPTO LEVEL Q

SELLING PRICE/UNIT
INVENTORY COST FOR UNSOLD INVENTORY

MONTH # Simulated Demand Units Sold = Min(D, Q) UNSOLD Inventory @ Month end Amount produced this month
1 139 110 0 110
2 101 101 9 110
3 91 91 19 101
4 133 110 0 91
5 101 101 9 110
6 127 110 0 101
7 121 110 0 110
8 94 94 16 110
9 107 107 3 94
10 86 86 24 107
11 104 104 6 86
12 122 110 0 104
13 119 110 0 110
14 83 83 27 110
15 116 110 0 83
16 100 100 10 110
17 91 91 19 100
18 88 88 22 91
19 110 110 0 88
20 107 107 3 110
2140 2033 -1923
on

FIND THIS--> 110 Q Inventory at start of Month 1

130
50

Simulated cost/unit Total production cost Inventory cost Total Revenue PROFIT ALL Demand Met? (1 = Yes, 0 = No)
52 5720 0 14300 8580 0
65 7150 450 13130 5530 1
40 4040 950 11830 6840 1
50 4550 0 14300 9750 0
52 5720 450 13130 6960 1
40 4040 0 14300 10260 0
52 5720 0 14300 8580 0
40 4400 800 12220 7020 1
50 4700 150 13910 9060 1
52 5564 1200 11180 4416 1
50 4300 300 13520 8920 1
50 5200 0 14300 9100 0
50 5500 0 14300 8800 0
52 5720 1350 10790 3720 1
50 4150 0 14300 10150 0
45 4950 500 13000 7550 1
40 4000 950 11830 6880 1
50 4550 1100 11440 5790 1
50 4400 0 14300 9900 0
40 4400 150 13910 9360 1
98774 8350 TOTAL PROFIT----->> 157166 12
<<---------- NO MONTHS DEMAND MET
 Group 9 - Kylie Foradori and Lauren Jackson
Q Profit Inv. Cost Prod. Cost Periods Demand Met Raw Demand Met Demand
90 145010 650 86650 3 2140 1787
95 150040 1850 90300 6 2140 1863
100 154290 3350 93650 6 2140 1933
105 156590 5550 96430 10 2140 1989
110 157166 8350 98774 12 2140 2033
115 156426 11600 100814 13 2140 2068
120 155018 15100 102622 15 2140 2098
125 152013 19200 103867 17 2140 2116
130 148224 23600 104816 18 2140 2128
135 143923 28200 105557 19 2140 2136
140 139123 33000 106077 20 2140 2140
145 133863 38000 106337 20 2140 2140
150 128603 43000 106597 20 2140 2140
155 123343 48000 106857 20 2140 2140
160 118083 53000 107117 20 2140 2140
165 112823 58000 107377 20 2140 2140
170 107563 63000 107637 20 2140 2140
175 102303 68000 107897 20 2140 2140
180 97043 73000 108157 20 2140 2140
185 91783 78000 108417 20 2140 2140
190 86523 83000 108677 20 2140 2140
195 81263 88000 108937 20 2140 2140
200 76003 93000 109197 20 2140 2140

Profit v. Q
180000
160000
140000
120000
100000
Profit

80000
60000
40000
20000
0
90 10
0
11
0
12
0
13
0
14
0
15
0
16
0
17
0
18
0
19
0
20
0

Inventory Cost v. Q
100000
90000
80000
70000
ventory Cost

60000
50000
40000
30000
 Inventory Cost v. Q
100000
90000
80000
70000

Inventory Cost
60000
50000
40000
30000
20000
10000
0
90 10
0
11
0
12
0
13
0
14
0
15
0
16
0
17
0
18
0
19
0
20
0

Unmet Demand v. Q
400
350
300
250
Unmet Demand

200
150
100
50
0
90 10
0
11
0
12
0
13
0
14
0
15
0
16
0
17
0
18
0
19
0
20
0

Q
Unmet Demand
353
277
207
151
107
72
42
24
12
4
0
0
0
0
0
0
0
0
0
0
0
0
0