AMS 553: Program Set 2-Due December 2 (Thursday) Consider a single commodity inventory system, where times between successive demands are i.i.d. U (0 , 1) days, demands are i.i.d. exponentially distributed with mean 10 tons. Assume all demands that cannot be satisﬁed immediately are backlogged. Suppose an ( s,S ) ordering policy is applied to the inventory system. The inventory level is reviewed at the beginning of each week and an order is placed whenever the current inventory level (at the beginning of each week) falls below s , and the amount to order equals the diﬀerence between S and the current inventory level. Orders placed cannot be received immediately and the order lead times are assumed to be i.i.d. U (0 , 1) days. The following cost structure is used in the inventory system: annual (1 year = 52 weeks) holding cost: $1 . 80 per ton annual shortage cost: $10 per ton order cost: setup cost = $15 per order; cost of per ton item = $6. Write a simulation program to simulate the above inventory system. Your program should be able
This is the end of the preview.
access the rest of the document.
Randomness, Random number generation, Inverse transform sampling