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Question 2 (Simulation) The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. Probability distributions for the purchase cost, the labor cost, and the transportation cost are as follows: Labour Cost Transportation Cost (S) Purchase Cost (S) Probability (S) Probability Probability 10 0.25 20 0.1 0.75 0.45 22 0.25 0.25 12 0.3 24 0.35 25 0.3 Assume that these are the only costs and that the selling price for the product will be S45 per unit. a. Provide the base (most likely)-case, worst-case, and best-case calculations for the profit per unit. b. Set up intervals of random numbers that can be used to randomly generate the three cost components, and find the average profit based on 10 simulation trials. Show your simulation model (including the formulas sed) as developed with Excel. e. Using the random numbers 0.3726, 0.5839, and 0.8275, calculate the profit per unit. ( d. Management believes the project may not be profitable if the profit per unit is less than $5. Explain how simulation can be used to estimate the probability the profit per unit will be less than S5.(:

Question 2 (Simulation) The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. Probability distributions for the purchase cost, the labor cost, and the transportation cost are as follows: Labour Cost Transportation Cost (S) Purchase Cost (S) Probability (S) Probability Probability 10 0.25 20 0.1 0.75 0.45 22 0.25 0.25 12 0.3 24 0.35 25 0.3 Assume that these are the only costs and that the selling price for the product will be S45 per unit. a. Provide the base (most likely)-case, worst-case, and best-case calculations for the profit per unit. b. Set up intervals of random numbers that can be used to randomly generate the three cost components, and find the average profit based on 10 simulation trials. Show your simulation model (including the formulas sed) as developed with Excel. e. Using the random numbers 0.3726, 0.5839, and 0.8275, calculate the profit per unit. ( d. Management believes the project may not be profitable if the profit per unit is less than $5. Explain how simulation can be used to estimate the probability the profit per unit will be less than S5.(:

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Question 2 (Simulation) The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. Probability distributions for the purchase cost, the labor cost, and the transportation cost are as follows: Labour Cost Transportation Cost (S) Purchase Cost (S) Probability (S) Probability Probability 10 0.25 20 0.1 0.75 0.45 22 0.25 0.25 12 0.3 24 0.35 25 0.3 Assume that these are the only costs and that the selling price for the product will be S45 per unit. a. Provide the base (most likely)-case, worst-case, and best-case calculations for the profit per unit. b. Set up intervals of random numbers that can be used to randomly generate the three cost components, and find the average profit based on 10 simulation trials. Show your simulation model (including the formulas sed) as developed with Excel. e. Using the random numbers 0.3726, 0.5839, and 0.8275, calculate the profit per unit. ( d. Management believes the project may not be profitable if the profit per unit is less than $5. Explain how simulation can be used to estimate the probability the profit per unit will be less than S5.(e
Transcribed Image Text:Question 2 (Simulation) The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. Probability distributions for the purchase cost, the labor cost, and the transportation cost are as follows: Labour Cost Transportation Cost (S) Purchase Cost (S) Probability (S) Probability Probability 10 0.25 20 0.1 0.75 0.45 22 0.25 0.25 12 0.3 24 0.35 25 0.3 Assume that these are the only costs and that the selling price for the product will be S45 per unit. a. Provide the base (most likely)-case, worst-case, and best-case calculations for the profit per unit. b. Set up intervals of random numbers that can be used to randomly generate the three cost components, and find the average profit based on 10 simulation trials. Show your simulation model (including the formulas sed) as developed with Excel. e. Using the random numbers 0.3726, 0.5839, and 0.8275, calculate the profit per unit. ( d. Management believes the project may not be profitable if the profit per unit is less than $5. Explain how simulation can be used to estimate the probability the profit per unit will be less than S5.(e
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