Fill Rate (percentage of demand that is met with sales) to determine the impact of the inventory policy. Note: you will need to use some Excel functions to create this model. Run the simulation model using the current decision values. Copy and paste the charts, with statistics, for each Forecast to a new spreadsheet in your workbook (label the sheet ‘2a Charts’). Using the model developed in Part a, SWI would like to determine if a better inventory policy can be found by using a Decision Table (you do not need to create a second version of the model to perform this task). They would like to look at changing the two Decision as follows: Order Quantity has a range from 1-20 (discrete), and Reorder Point has a range from 1-10 (discrete). Create a Decision Table for the Total Cost Forecast developed in Part a. Use both Decisions to create the table; test 20 values for Order Quantity and test 10 values for Reorder Point. Copy and paste the table over to a new sheet within your HW2 workbook and label the sheet ‘2b’. Answer the following question about the report: What is the optimal combination of Order Quantity and Reorder Point that will minimize the Mean Total Cost? Highlight the optimal value in the table with a yellow cell color. Return to the model developed in Part a, but now set the Order Quantity and Reorder Point to the optimal values determined in Part b rather than the values provided in the problem description; then run the simulation model with these new values. Copy and paste the charts, with statistics, for each Forecast to a new ‘2c Charts’ sheet in your workbook (make sure you clearly label/distinguish the two sets of charts).
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