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Exercise 14 (p. 63) – An electronics superstore
SimQuick model (50 points)
Part
Exercise 14 (p. 63) – An electronics superstore
SimQuick model (50 points)
Part a (25 points): For each scenario in the previous table, run 500 simulations and report the overall mean service level and the estimated total cost.
Part b (10 points): Does this new reorder point (i.e., 25) achieve the desired service level of 90% with order size = 35, 45, 55, 65, and 75? Support your answer using your simulation results.
Part c (10 points): If so, which reorder point scenario would you recommend? Explain.
Part d (5 points): As the order size increases, what happens to the ordering and holding costs?
Your submission should include both a SimQuick Excel file and a Word document. The organization and clarity of the answer may affect the grade received.
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