Homework SourseOne of PLEs manufacturing plants supplies various engine com
One of PLE\'s manufacturing plants supplies various engine components to manufacturers of motorcycles on a just-in-time basis. Planned production capacity for one component is 100 units per shift, and the plant operates one shift per day. Because of fluctuations in customers\' assembly operations, however, demand fluctuates and is historically between SO and 130 units per day. To maintain sufficient inventory to meet its just-in-time commitments, PLE\'s management is considering a policy to run a second shift the next day if inventory falls to 50 or below at the end of a day (after the daily demand is known). For the annual budget planning process, managers need to know how many additional shifts will be needed. The fundamental equation that governs this process each day is ending inventory = beginning inventory + production - demand Develop a spreadsheet model to simulate 260 working days (one year), and count the number of additional shifts that are required. Assume that the initial inventory is 100 units. Using the number of additional shifts required as the output cell for a Monte Carlo simulation, find the distribution of the number of shifts that the company can expect to need over the next year. Explain and summarize your findings in a report to the plant manager and make a recommendation as to how many shifts to plan in next year\'s budget.
Solution
We simply assuming that the demand increasing by 10 so we may use the roll of a die randomly generate the demand each day.
Monte carlo simulation is
(1) Being a new day
(2) Set the beginning inventory equal to the end inventory for the previous day
(3) Determinf the demand by rolling the die
(4) If beginning inventory is less than 50, the day production is 200,otherwise 100
(5) use the given equation to compute end inventory
(6) Stop when we reach to conclusion
Similarly for 260 days
I have done 50 days
In the 50 days, there are only one addition shift is occured
| Roll of a die | Demand |
| 1 | 80 |
| 2 | 90 |
| 3 | 100 |
| 4 | 110 |
| 5 | 120 |
| 6 | 130 |
