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Solve the following Make in-house or outsource decision model using Monte Carlo Simulation of Data Table. The production level has to be set equal to demand. Demand is assumed to follow a normal distribution of mean = 1200 and a standard deviation of 175. Make 1000 trials to simulate demand to find out the approximate probability to meet the demand through outsourcing, Data Manufactured in-house Fixed cost $50,000 Unit variable cost $135 Purchased from supplier Unit cost $180 Production volume Model Total manufacturing cost Total purchased cost Cost difference Decision (Production/ Outsourcing)

Solve the following Make in-house or outsource decision model using Monte Carlo Simulation of Data Table. The production level has to be set equal to demand. Demand is assumed to follow a normal distribution of mean = 1200 and a standard deviation of 175. Make 1000 trials to simulate demand to find out the approximate probability to meet the demand through outsourcing, Data Manufactured in-house Fixed cost $50,000 Unit variable cost $135 Purchased from supplier Unit cost $180 Production volume Model Total manufacturing cost Total purchased cost Cost difference Decision (Production/ Outsourcing)

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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Solve the following Make in-house or outsource decision model using Monte Carlo Simulation of Data Table. The production level has to be set equal to demand. Demand is assumed to follow a normal distribution of mean = 1200 and a standard deviation of 175. Make 1000 trials to simulate demand to find out the approximate probability to meet the demand through outsourcing,
Data
Manufactured in-house
Fixed cost
$50,000
Unit variable cost
$135


Purchased from supplier
Unit cost
$180


Production volume

Model


Total manufacturing cost
Total purchased cost

Cost difference
Decision (Production/ Outsourcing)

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