Scribd
Upload
25 views

Simulation Exercise

Uploaded by

CathlynGalang
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
25 views

Simulation Exercise

Uploaded by

CathlynGalang
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Republic of the Philippines

President Ramon Magsaysay State University


(Formerly Ramon Magsaysay Technological
University)

Princess company stocks products in its central warehouse. Record shows quantity of daily
delivery to other warehouses

Delivery in thousand units


10
25
30
35
30
40

a. Prepare a simulation model using Monte Carlo technique.


b. Considering the sequence of random numbers 20, 30, 46, 34, 55, 71, 26, 88, 90, and 41,
simulate the delivery for the next 10 days.
c. Estimate the daily average delivery based on simulated data.
d. What would be the effect if the company decides to retain inventory of 30,000 units?
 If the company decides to retain the inventory of 30,000 units, I think their daily
delivery will be lessen or will be lower than their usual number of deliveries since
they will remain constant in 30,000 units.

Cumulative Random Numbers


Delivery in thousand units Probability
Probability Intervals

10 0.06 0.06 1–6

25 0.15 0.21 7 – 21
30 0.18 0.39 22 – 39
35 0.20 0.59 40 – 59
30 0.18 0.77 60 – 77
40 0.23 1.00 78 – 100
Total = 170 1.00
Days Random Number Simulated Delivery
1 20 25
2 30 30
3 46 35
4 34 30
5 55 35
6 71 30
7 26 30
8 88 40
9 90 40
10 41 35
TOTAL 330 (in thousands unit)

Average Daily Delivery = 330/10 = 33 (in thousands unit)

You might also like