Service Management 7th Edition by James Fitzsimmons, Mona Fitzsimmons

Exercise 10

Constructing a distribution of demand during reorder lead time is complicated if the lead time itself is variable. Consider the following distribution for a reorder point inventory system.

a. What is the range of possible demands during the variable lead time?
b. Using the Monte Carlo method and random numbers from Appendix B, simulate 10 demands during lead time that could be used to form a histogram.