Exercise 1: Simulation to determine the number of cars to be ordered
1.In August 2000, a car dealer is trying to determine how many
2001 cars should be ordered. Each car ordered in August 2000
costs $10,000. The demand for the dealer’s 2001 model has the
probability distribution shown in the following table. Each car
sells for $15,000. If demand for 2001 cars exceeds the number
of cars ordered in August, the dealer must reorder at a cost of
$12,000 per car. Excess cars may be disposed of at $9,000 per
car. Supposedthatthenumberofordercouldbe20,25,30,35
and40,use simulation to determine how many cars should be
ordered in Augustinordertogetthemaximummeanofprofit.
Exercise 1: Simulation to determine the number
of cars to be ordered
No. of cars demandedProbability
20 .25
25 .35
30 .20
35 .15
40 .05
2.Suposedthatthenumberofordercouldbeanyinteger
between20to40andthedistribution of the demandis
continuous,plotthemeanprofitasafunctionoforder
number. (Fit the continuous distribution with data in the
following table.)