Exercise N:1 (Simulation modeling of inventory systems) Ahmed home furnishing is currently having its year-end appliance clearance sale. The store has 12 refrigerators on sale; 5 are white, 4 are almond, and 3 are harvest gold. Each day, the company expects between 0 and 4 customers interested in buying refrigerator to arrive at the store according to the following probability distribution: P(0 arrivals) =.15; P(1 arrival) =.25; P(2 arrivals) =.30; P(3 arrivals) =.20; P(4 arrivals) =.10 For each of these customers, there is a 60% chance that the person will want to purchases one of the sale-priced refrigerators. Ahmed knows that 40% of customers desire a white refrigerator, 25% desire an almond refrigerator, and 35% desire a harvest gold refrigerator. If the store is sold out of a particular color choice, the customer will leave without making a purchase. Use random numbers from column 1 to determine the number of customer arrivals, column 2 to determine whether an arriving customer will wish to purchase a refrigerator, and column 3 to determine the choice of color. How many days will it take for Ahmed to sell all 12 refrigerators?

Solution [This exercise is based on Simulation modeling of inventory systems ieA survey of simulation techniques used in the modeling of in ventory systems.Ahamed took year end sales clearence,he came to know 12 refrigerators on sales of them 5 white color, 4 almond and 3 harvest gold color. Each day expect of buying between 0 to 4 probability distribution are P(0 arrivals) =.15; P(1 arrival) =.25; P(2 arrivals) =.30; P(3 arrivals) =.20; P(4 arrivals) =.10]

Find the cumulative probability P(x<=3)=p(x=0)+p(x=1)+p(x=2)+p(x=3) We can setup cumulative probability based on customer arrival. Cum prob# arrival

Cumprob #Arrival We can setup cum prob based on color of refrigerator Cumprobtype 0white 0.4almond 0.655gold We can setup chance for people to buy the refrigerator Cum probDecision 0yes 0.6No

Now we are going to find how many days needed to sale all the 12 refrigrerator