08SimHw8 - IEOR 4404 Simulation Prof Mariana...

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IEOR 4404 Assignment #8 Simulation November 11, 2008 Prof. Mariana Olvera-Cravioto Page 1 of 2 Assignment #8 – due November 18th, 2008 1. Suppose that Y 1 ,Y 2 ,... is an output process with steady-state mean ν and that Y ( n ) is the usual sample mean based on n observations. Consider plotting Y ( n ) as a function of n and let l 0 be the point beyond which Y ( m ) does not change appreciably. Is l 0 a good warmup period in the sense that E [ Y i ] ν for i > l 0 and also that l 0 is not excessively large? Why? 2. A company that sells a single product would like to decide how many items it should have in inventory for each of the next n months ( n is a fixed input parameter). The times between demands are iid exponential random variables with a mean of 0.1 month. The sizes of the demands, D , are iid random variables (independent of when the demands occur), with i 1 2 3 4 P ( D = i ) 1/6 1/3 1/3 1/6 At the beginning of each month the company reviews the inventory level and decides how many items to order from its supplier. If the company orders
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This note was uploaded on 12/20/2010 for the course IEOR E4404 taught by Professor Marianaolvera-cravioto during the Spring '08 term at Columbia.

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08SimHw8 - IEOR 4404 Simulation Prof Mariana...

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