Name: Mahesh A Abnave BEIT 500862 Batch III

Title: Inventory system simulation using MS Excel spreadsheet

Sample Cell formulae:

For Beginning Inventory: C17 =IF(N16=0,H16+J$16,H16)

For RD for Demand: D17 =RAND()*100

For Demand: G17 =

=IF(AND(D17>=D$7,D17<=F$7),A$7,IF(AND(D17>=D$8,D17<=F$8),A$8,IF(AND(D17>=D$9,D17<=F$9),A$9,IF(AND(D17
>=D$10,D17<=F$10),A$10,IF(AND(D17>=D$11,D17<=100),

For Ending Inventory: H17 = IF(C17-G17-I16>=0,C17-G17-I16,0)

For Shortage Quantity: I17 =IF(C17<G17,(C17-G17)*-1+I16,0)

For Order Quantity: J21 =SUM(G17:G21)

RD for Lead Time: K21 =RAND()*10

Days Until Order Arrives: N18 =IF(N17="-",IF(K18="-","-

",IF(AND(K18>=K$7,K18<=M$7),H$7,IF(AND(K18>=K$8,K18<=M$8),H$8,IF(AND(K18>=K$9,K18<=M$9),H$9)))),IF(N17
=0,"-",N17-1))

Ending Inventory Total: H42 =SUM(H17:H41)

Average Inventory: E45 = =H42/25

Number of days shortage occurred: C47 =COUNTIF(I17:I41,">0")

Output

Random-Digit Assignments for Daily Demand

Cumulative Random-Digit
Demand Probability Probability Assignment
0 0.1 0.1 1 - 10
1 0.25 0.35 11 - 35
2 0.35 0.7 36 - 70
3 0.21 0.91 71 - 91
4 0.09 1 92 - 0

Random-Digit Assignments for Lead Time

Random-
Lead Time Cumulative Digit
(Days) Probability Probability Assignment
1 0.6 0.6 1 - 6
2 0.3 0.9 7 - 9
3 0.1 1 0 - 0
 Random Random Days until
Beginning Digits for Ending Shortage Order Digit for Order
Cycle Day Inventory Demand Demand Inventory Quantity Quantity Lead Time Arrives
Initial 3 0 8 2
1 3 45 2 1 0 - - 1
2 1 92 4 0 3 - - 0
1 3 8 16 1 4 0 - - -
4 4 71 3 1 0 - - -
5 1 19 1 0 0 11 2 1
1 0 4 0 0 0 - - 0
2 11 38 2 9 0 - - -
2 3 9 57 2 7 0 - - -
4 7 55 2 5 0 - - -
5 5 48 2 3 0 8 9 FALSE
1 3 93 4 0 1 - - -1
2 0 74 3 0 4 - - -2
3 3 0 95 4 0 8 - - -3
4 0 58 2 0 10 - - -4
5 0 45 2 0 12 15 9 -5
1 0 60 2 0 14 - - -6
2 0 92 0 0 0 - - -7
4 3 0 46 2 0 2 - - -8
4 0 10 0 0 0 - - -9
5 0 94 4 0 4 8 5 -10
1 0 88 3 0 7 - - -11
2 0 24 1 0 8 - - -12
5 3 0 71 3 0 11 - - -13
4 0 31 1 0 12 - - -14
5 0 84 3 0 15 11 7 -15
Total 30
Analysis:

Based on five cycles of simulation, the averageinventory is approximately 0.4 units.inventory is approximately

On 11 of 25 days a shortage condition existed.