Case 1:

TalkNow phone store is located in a prime area in Al Ain. The average daily demand for the model T3 phone is relatively low but to some variability. As well. Ahmed to develop a simulation model to test the inventory. Policy of ordering 100 phones, with a reorder point of 50. It means that every time the on-hand inventory level of the day is greater than the reorder point or less. Ahmed will call one of his suppliers and place an order for 100 more T3 phones, the order will arrive next morning. Stock outs become lost sales, not backorder.

Case 2:

Sultan and Sultan Incorporated have gone out on a bid for a regular component. Theexpected demand is 700 units per month. The item can be purchased from either Al Shamsi Holdings or Mansour Ltd. Their price lists are shown below. Ordering is $75, and annual holding cost per unit is $7.

Case 3:

ALAIN SoBe Fitness stores located in several malls in the UAE. The CEQ Ahmed Bin Mohammed send a memo to all operations personnel complained about the budget overuns about the AL Ain SoBe Fitness central distribution center:

(DO. In particular, he said that inventories were too high and that the budget will be cut dramatically and proportionally equal for all items in stock.