Problem 9-13, p.

216 in Textbook

(a)
NUMBER
SALES Cum Expected Expected Cumulative
OF PROB Shortage Excess Range
(CASES) Prob Shortage Excess Probability
WEEKS
40 4 0.08 0.08 0 2 0.00 0.16 0.08 .00 - .07
41 10 0.20 0.28 0 1 0.00 0.20 0.28 .08 - .27
42 12 0.24 0.52 0 0 0.00 0.00 0.52 .28 - .51
43 9 0.18 0.70 1 0 0.18 0.00 0.70 .52 - .69
44 8 0.16 0.86 2 0 0.32 0.00 0.86 .70 - .85
45 7 0.14 1.00 3 0 0.42 0.00 1.00 .86 - 1.00

TOTAL 50 1.00 0.92 0.36 (c) Expected Shortage &

Expected Excess Inventory

Rand( ) Demand Shortage Excess

1 0.36 42 0 0
2 0.08 40 0 2
3 0.49 42 0 0
4 0.89 45 3 0
5 0.59 43 1 0
6 0.52 43 1 0
7 0.12 41 0 1
8 0.98 45 3 0
9 0.86 45 3 0
10 0.72 44 2 0
Average 43 1.30 0.30 (b) Average Shortage & Average Excess for 10
weeks
 Problem 9-13, p.216 in Textbook

(a)
SALES NUMBER
PROB Cum Prob Shortage Excess Expected Shortage Expected Excess Cumulative Probability Range
(CASES) OF WEEKS

40 4 =B3/$B$10 =C3 =MAX(A3-42,0) =MAX(42-A3,0 =E3*C3 =F3*C3 =C3 .00 - .07

41 10 =B4/$B$10 =D3+C4 =MAX(A4-42,0) =MAX(42-A4,0 =E4*C4 =F4*C4 =I3+C4 .08 - .27
42 12 =B5/$B$10 =D4+C5 =MAX(A5-42,0) =MAX(42-A5,0 =E5*C5 =F5*C5 =I4+C5 .28 - .51
43 9 =B6/$B$10 =D5+C6 =MAX(A6-42,0) =MAX(42-A6,0 =E6*C6 =F6*C6 =I5+C6 .52 - .69
44 8 =B7/$B$10 =D6+C7 =MAX(A7-42,0) =MAX(42-A7,0 =E7*C7 =F7*C7 =I6+C7 .70 - .85
45 7 =B8/$B$10 =D7+C8 =MAX(A8-42,0) =MAX(42-A8,0 =E8*C8 =F8*C8 =I7+C8 .86 - 1.00

TOTAL =SUM(B3:B=SUM(C3:C9) =SUM(G3:G9) =SUM(H3:H9)

(c) Expected Shortage & Expected Excess Inventory

Rand( ) Demand Shortage Excess

1 =RAND() =IF(B14>$D$7,$A$ =MAX(C14-42,0) =MAX(42-C14,
2 =RAND() =IF(B15>$D$7,$A$ =MAX(C15-42,0) =MAX(42-C15,
3 =RAND() =IF(B16>$D$7,$A$ =MAX(C16-42,0) =MAX(42-C16,
4 =RAND() =IF(B17>$D$7,$A$ =MAX(C17-42,0) =MAX(42-C17,
5 =RAND() =IF(B18>$D$7,$A$ =MAX(C18-42,0) =MAX(42-C18,
6 =RAND() =IF(B19>$D$7,$A$ =MAX(C19-42,0) =MAX(42-C19,
7 =RAND() =IF(B20>$D$7,$A$ =MAX(C20-42,0) =MAX(42-C20,
8 =RAND() =IF(B21>$D$7,$A$ =MAX(C21-42,0) =MAX(42-C21,
9 =RAND() =IF(B22>$D$7,$A$ =MAX(C22-42,0) =MAX(42-C22,
10 =RAND() =IF(B23>$D$7,$A$ =MAX(C23-42,0) =MAX(42-C23,
Average
=AVERAGE(C14:C =AVERAGE(E14:E=AVERAGE(F1(b) Average Shortage & Average Excess for 10 weeks