Use AnyLogic Software for this work. Plot the Inventory level, Total Cost, and output the avgTotalCost after 120 days. Create two separate flowcharts, one is the customer demand fulfillment and the other is the daily inventory evaluation. Widgets by Bucky, a multi-national holding company, carries inventory of one kind of item (of course, they're called widgets). Widgets are indivisible, so the inventory level must always be an integer, which we'll denote as I(t) where t is time (in days) past the beginning of the simulation. Initially, 60 widgets are on hand: 1(0) = 60. Customers arrive with interarrival times distributed as exponential with mean 0.1 day (it's a round-the-clock operation), with the first arrival occurring not at time 0 but after one of these interarrival times past time 0.

Customers demand one, two, three, or four widgets with respective probabilities 0.167, 0.333, 0.333, and 0.167. If a customer's demand can be met out of on-hand inventory, the customer gets the full demand and goes away happy. But if the on-hand inventory is less than the customer's demand, the customer gets whatever is on hand (which might be nothing), the rest of the demand is backlogged, and the customer gets it later when inventory will have been sufficiently re- plenished; this is kept track of by allowing the inventory level I(t) to go negative, which makes no sense physically but is a convenient accounting artifice. Customers with back- logged items are infinitely patient and never cancel their orders. If the inventory level is already negative (that is, we're already in backlog) and more customers arrive with demands, it just goes more negative. We don't keep track of specifically which widgets arriving in the future will satisfy which backlogged customers (they're also infinitely polite, so it doesn't matter). At the beginning of each day (including at time 0, the beginning of day 1), Bucky "takes inventory" to decide whether to place an order with the widget supplier at that time. If the inventory level (be it positive or negative) is (strictly) less than a constant s (we'll use s = 20), Bucky orders "up to" another constant S (we'll use S = 40). What this means is that he orders a quantity of widgets so that, if they were to arrive instantly, the inventory level would pop up to exactly S.

STEP BY STEP Explanation to simulate using AnyLogic software

2. Define Entities:

In your model, you'll need to define the following entities:

Define the following parameters:

• initialInventory: Set this to 60, representing the initial inventory level.

• holdingCostPerWidget: Set this to $1, the holding cost per widget per day.

• shortageCostPerWidget: Set this to $5, the shortage cost per widget per day.

• totalOrderingCost: This tracks the cumulative ordering cost.

• totalHoldingCost: This tracks the cumulative holding cost.

Use the "Event" element to schedule daily inventory evaluations. In this event, check the current inventory level and decide whether to place an order or not based on the (s, S) inventory policy.

7. Order Arrival Logic:

To stop the simulation at time 119.9999, you can use a conditional statement in the inventory evaluation logic. If the current time reaches 119.9999, stop the simulation.

10. Data Collection:

After the simulation is complete, you can analyze the collected data, including the average total cost after 120 days.

This is a high-level overview of how to model and simulate the system you described using AnyLogic. You will need to create the necessary agents, events, and flows within AnyLogic to implement this simulation in detail. If you have specific questions about implementing certain elements in AnyLogic, feel free to ask.