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Simulation: Inventory Policy for Amy?s Art

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Question;Simulation: Inventory;Policy for Amy?s Art;A.;Based on the calculation for;the delivery date, what assumption is being made about lead time?;Response: 1st of;all here the Uniform distribution is assumed for lead time which is already;discussed. Next for the delivery date the assumption was that, the lead time as;obtained is fixed so if we make an order on 5th day and lead time is;5 days then the order is definitely going to deliver on 11th day.;This was the assumption.;This portion of the assignment includes;Scenario Manager. Amy would like to investigate other combinations of Q and R;to identify the inventory policy that results in the lowest average total cost.;She is interested in investigating order quantities of 10 or 12, and reorder;points of 5, 6, 7 and 8.;Run the following Scenarios and make the;modifications identified. (Q of 12 and R of 6 is the current policy and not;included in the scenario manager.) Scenarios;Order quantity, Q;Reorder point, R;Scenario Name;12;5;Q12R5;12;7;Q12R7;12;8;Q12R8;10;5;Q10R5;10;6;Q10R6;10;7;Q10R7;10;8;Q10R8;?Names?;Name the ?result? cells in that you created;in the data table. These are the values for the different types of cost.;Run the scenarios described above. The costs are the result cells.;1.;Based on the results from the;scenarios, what inventory policy do you recommend? Explain to Amy why you recommend this policy.;2.;Are there other scenarios that;should be considered? Why? If so, run 200 simulations to explore other;policy options and report your findings.;3.;Are there other variables that;you would include in Scenario Manager to assist Amy in her decision? (Exclude demand, lead time distributions, and;cost.);4.;Refer to question A at the very;top. How would you model lead time? Describe assumptions and appropriate;statistical distributions. Justify your;answer.;5.;Change the lead time to vary;from 0 to 1 and rerun Scenario Manager.;Comment on the results and implications for inventory management.

 

Paper#51981 | Written in 18-Jul-2015

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