SOLUTION: Question three
a) Describe the term simulation
b) Explain the advantages and disadvantages of simulation techniques
c) Meru bakery keeps stock of a popular brand of cake. Daily
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-> SOLUTION: Question three
a) Describe the term simulation
b) Explain the advantages and disadvantages of simulation techniques
c) Meru bakery keeps stock of a popular brand of cake. Daily
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Question 1142281: Question three
a) Describe the term simulation
b) Explain the advantages and disadvantages of simulation techniques
c) Meru bakery keeps stock of a popular brand of cake. Daily demand based on past experience is given below:
Daily demand: 0 15 25 35 45 50
Probability: 0.01 0.15 0.20 0.50 0.12 0.02
Consider the following sequence of random numbers:
48 78 09 51 56 77 15 14 68 09
i. Using the sequence, simulate the demand for the next 10 days
ii. Find the stock demand if the owner of the bakery decides to make 35 cakes every day. Also estimate the daily average demand for the cakes on the basis of the simulated data.
