Solved Problems
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Solved Problem F.1
Higgins Plumbing and Heating maintains a stock of 30-gallon water heaters that it sells to homeowners and installs for them. Owner Jim Higgins likes the idea of having a large supply on hand to meet any customer demand. However, he also recognizes that it is expensive to do so. He examines water heater sales over the past 50 weeks and notes the following:
| Water Heater Sales Per Week | Number of Weeks This Number Was Sold |
|---|---|
| 4 | 6 |
| 5 | 5 |
| 6 | 9 |
| 7 | 12 |
| 8 | 8 |
| 9 | 7 |
| 10 | 3 |
| 50 weeks total data |
If Higgins maintains a constant supply of 8 water heaters in any given week, how many times will he stockout during a 20-week simulation? We use random numbers from the ...
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