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ORE360S - Assignment 1 - 2025 - Rev01

This document outlines Assignment 1 for the ORE360S Operations Research course, due on March 7, 2025. It includes two main questions: the first requires simulating customer arrivals and service times at a fast-food restaurant, while the second involves analyzing demand and inventory management for Dumoor Appliance Center. Students must calculate costs associated with stockouts and holding inventory under different reorder points.

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Thembinkosi Thomo
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22 views3 pages

ORE360S - Assignment 1 - 2025 - Rev01

This document outlines Assignment 1 for the ORE360S Operations Research course, due on March 7, 2025. It includes two main questions: the first requires simulating customer arrivals and service times at a fast-food restaurant, while the second involves analyzing demand and inventory management for Dumoor Appliance Center. Students must calculate costs associated with stockouts and holding inventory under different reorder points.

Uploaded by

Thembinkosi Thomo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ASSIGNMENT 1 ORE360S 03/03/2025

ORE360S (Operations Research)


Assignment 1
Due: 07 March 2025 at 23h59 (Blackboard)

QUESTION 1 [20]

The time between arrivals at a drive-through window of a fast-food restaurant follows the
distribution given below. The service time distribution is also given in the table below. Use the
random numbers provided to simulate the activity of the first ten arrivals. Assume that the window
opens at 11:00 a.m. and the first arrival after this is based on the first inter-arrival time generated.

Time Between
Probability Service Time Probability
Arrivals
1 0.2 1 0.3
2 0.3 2 0.5
3 0.3 3 0.2
4 0.2

Random numbers for arrivals: 52; 06; 50; 88; 53; 30; 10; 47; 99; 37
Random numbers for service times: 37; 63; 28; 02; 74; 35; 24; 03; 29; 60

Required:
What time does the tenth customer leave the system? Show all iterations.

QUESTION 2 [40]

Dumoor Appliance Center sells and services several brands of major appliances. Past sales for
a particular model of refrigerator have resulted in the following probability distribution for demand:

DEMAND PER WEEK 0 1 2 3 4


Probability 0.20 0.40 0.20 0.15 0.05

The lead time, in weeks, is described by the following distribution:

LEAD TIME (WEEKS) 1 2 3


Probability 0.15 0.35 0.50
ASSIGNMENT 1 ORE360S 03/03/2025

2.1) Based on cost considerations as well as storage space, the company has decided to order
10 of these each time an order is placed. The holding cost is $1 per week for each unit that
is left in inventory at the end of the week. The stockout cost has been set at $40 per stockout.
The company has decided to place an order whenever there are only two refrigerators left at
the end of the week.
By choosing any 10 random numbers from Appendix A, simulate 10 weeks of operation for
Dumoor Appliance assuming there are currently 5 units in inventory. Determine what the
weekly stockout cost and weekly holding cost would be for the problem.
2.2) Repeat the simulation in 2.1, assuming that the reorder point is 4 units rather than 2. Compare
the costs for these two situations.
APPENDIX A ASSIGNMENT 1 ORE360S 03/03/2025

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