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 0.300789488244903 40
2 0.308651964654196 40
3 0.46878872326701 45
4 0.360199048444824 45
5 0.339919641669261 40
6 0.754089032823594 52
7 0.23726872628803 40
8 0.576249089253953 50
9 0.39105115918874 45
10 0.680558506025058 52
11 0.046338970330937 40
12 0.780462761770527 52
13 0.009854968040395 40
14 0.830283699308726 52
15 0.0634398843113 40
16 0.264737299212137 40
17 0.926921411956248 65
18 0.802704695219583 52
19 0.405633149092978 45
20 0.67642367613965 52
Mean for Normal Distribution 110
Standard Deviation for Normal 20

Month Random Number Demand Integer Demand

1 0.747846466466235 123.3546 123
2 0.690161498097238 119.9262 119
3 0.657825225863465 118.1307 118
4 0.433985516414352 106.6753 106
5 0.2357074016187 95.59642 95
6 0.091998670893086 83.42905 83
7 0.474944698257808 108.7431 108
8 0.160661833430179 90.16517 90
9 0.414292382489093 105.6697 105
10 0.300639449762496 99.54875 99
11 0.822004647820448 128.4606 128
12 0.222477806401995 94.72297 94
13 0.579364553083395 114.0054 114
14 0.357312352160746 102.687 102
15 0.24723626897229 96.33575 96
16 0.868707845693663 132.4061 132
17 0.509669686475607 110.4848 110
18 0.203222990460882 93.39672 93
19 0.744594485573313 123.1515 123
20 0.444432999299372 107.2052 107
SIMULATING AN INVENTORY POLICY

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
1 123 123 2
2 119 119 6
3 118 118 7
4 106 106 19
5 95 95 30
6 83 83 42
7 108 108 17
8 90 90 35
9 105 105 20
10 99 99 26
11 128 125 0
12 94 94 31
13 114 114 11
14 102 102 23
15 96 96 29
16 132 125 0
17 110 110 15
18 93 93 32
19 123 123 2
20 107 107 18
2145 2135 -2010
 FIND THIS--> 125
130
50

Amount produced this month Simulated cost/unit Total production cost Inventory cost
123 40 4920 100
119 40 4760 300
118 45 5310 350
106 45 4770 950
95 40 3800 1500
83 52 4316 2100
108 40 4320 850
90 50 4500 1750
105 45 4725 1000
99 52 5148 1300
125 40 5000 0
94 52 4888 1550
114 40 4560 550
102 52 5304 1150
96 40 3840 1450
125 40 5000 0
110 65 7150 750
93 52 4836 1600
123 45 5535 100
107 52 5564 900
98246 18250
Q Inventory at start of Month 1

Total Revenue PROFIT ALL Demand Met? (1 = Yes, 0 = No)

15990 10970 1
15470 10410 1
15340 9680 1
13780 8060 1
12350 7050 1
10790 4374 1
14040 8870 1
11700 5450 1
13650 7925 1
12870 6422 1
16250 11250 0
12220 5782 1
14820 9710 1
13260 6806 1
12480 7190 1
16250 11250 0
14300 6400 1
12090 5654 1
15990 10355 1
13910 7446 1
TOTAL PROFIT----->> 161054 18 <<-----------NO MONTHS DEMAND MET