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CMA Intermediate · Operations Management and Strategic Management · Simulation and Line Balancing

A tea stall's daily demand has this distribution: 20 cups (probability 0.30), 30 cups (0.50), 40 cups (0.20). Random numbers 00-99 are assigned as cumulative intervals in ascending order of demand. Which assignment is correct?

The correct assignment is 20 cups for 00-29, 30 cups for 30-79 and 40 cups for 80-99. Each demand level receives as many two-digit random numbers as its probability times 100, allotted cumulatively, so intervals are 30, 50 and 20 numbers long.

  1. A20 cups: 00-29; 30 cups: 30-79; 40 cups: 80-99Correct
  2. B20 cups: 00-30; 30 cups: 31-80; 40 cups: 81-99
  3. C20 cups: 01-30; 30 cups: 31-50; 40 cups: 51-70
  4. D20 cups: 00-19; 30 cups: 20-69; 40 cups: 70-99

Explanation

Cumulative probabilities are 0.30, 0.80 and 1.00. With two-digit numbers 00-99 (100 values), 20 cups gets 30 numbers (00-29), 30 cups gets 50 numbers (30-79), and 40 cups gets 20 numbers (80-99). Option 2 gives 31, 50 and 19 numbers, so it is wrong.

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