UNIVERSITY OF BEDFORDSHIRE
The Business School
BSS009-3 Business Forecasting and Simulation
Assignment Two (Simulation) – 2011/12
SIMULATION OF THE STOCK CONTROL SYSTEM FOR PRINTER CARTRIDGES
Computer Accessories Ltd. specialise in printer cartridges for a wide range of printers. Their most popular cartridge (Mostpopcart) accounts for a large percentage of their business, and as a result, they are keen on examining the stock control policy for this item.
The daily demand for Mostpopcart is as follows:
Computer Accessories Ltd. re-order when the stock level is 70 printers or less and there is no order outstanding. The lead time (time between the order being placed and the goods arriving) is evenly distributed between 2 and 5 days (inclusive). Customers are willing to wait if Computer Accessories Ltd. are out of stock. The stock level is checked at the start of the day (once the delivery has arrived; all deliveries arrive at the start of the day), and if necessary, an order is placed. The amount re-ordered is enough to bring the stock level back up to 120 items after taking into consideration any outstanding orders from customers.
The costs are as follows:
Cost of placing an order
Daily stock holding cost
£1.50 per printer per day.
Basic cost of printer
The suppliers of Computer Accessories Ltd. operate the following discount system:
Less than 40
Between 40 and 60
Between 60 and 80
Between 80 and 100
Between 100 and125
Greater than 125
The starting stock level is 100 printers.
You are required to:
Analyse the current system as best you can using appropriate analytical stock control models. Where necessary and possible, make (and clearly state) assumptions in order to be able to apply existing models.
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