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Aerial Products maintains a safety stock of 5 airframes in any given week. The owner likes to have the supply as a just in case buffer. Given the weekly demand in the data table in the accompanying spreadsheet:
A: Set up a simulation model that simulates sales over the number of weeks indicated and compute:
Replicate the model 200 times, using Data Table, to determine average weekly sales and the probability of more than 20 weeks with stockouts over a 2 year period.
B: Use the probability distribution for sales to determine the expected value of sales. Explain any differences between this value and the value from Part A.
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