Include detection and response of the condition described in problem 3 in the model and resimulate the using the lower value of the cut-off point.
Problem 3
One possibility that could arise during the simulation experiment is the following. Suppose a shipment of insufficient units failed to bring the inventory at the retailer above the reorder point. What would be the consequences for the simulation experiment? What conclusions could be drawn about operating the system with the particular reorder and cut-off point values?