Suppose that a small candy store makes Valentine's Day gift boxes that cost $14.00 and sell for $21.00. In the past, at least 40 boxes have been sold by Valentine's Day, but the actual amount is uncertain, and the owner has often run short or made too many. After the holiday, any unsold boxes are discounted 50% and are eventually sold. Set up and run a Monte Carlo simulation assuming that demand is triangular with minimum value = 40, maximum value = 50, and most likely value = 47. Find the distribution of profit for order quantities between 40 and 50 to identify the best order quantity. Use 20 simulation trials. Click the icon to view a sample of 220 simulation trial results. C Say the values of the selling price, cost, and discount price are entered in cells B6, B7, and B8, respectively, and the demand, purchase quantity, quantity sold, and surplus quantity are entered in cells B12, B13, B15, and B16, respectively. Then, for the Monte Carlo simulation, the quantity sold is = (BB), the surplus quantity is -BB), and the profit is =B15*B+B16*B-B13*B]. (Type whole numbers. Use ascending order.) Say the Monte Carlo simulation produced the provided simulation trial results. Use these results to determine the best order quantity. The best order quantity is (Type a whole number.)
Suppose that a small candy store makes Valentine's Day gift boxes that cost $14.00 and sell for $21.00. In the past, at least 40 boxes have been sold by Valentine's Day, but the actual amount is uncertain, and the owner has often run short or made too many. After the holiday, any unsold boxes are discounted 50% and are eventually sold. Set up and run a Monte Carlo simulation assuming that demand is triangular with minimum value = 40, maximum value = 50, and most likely value = 47. Find the distribution of profit for order quantities between 40 and 50 to identify the best order quantity. Use 20 simulation trials. Click the icon to view a sample of 220 simulation trial results. C Say the values of the selling price, cost, and discount price are entered in cells B6, B7, and B8, respectively, and the demand, purchase quantity, quantity sold, and surplus quantity are entered in cells B12, B13, B15, and B16, respectively. Then, for the Monte Carlo simulation, the quantity sold is = (BB), the surplus quantity is -BB), and the profit is =B15*B+B16*B-B13*B]. (Type whole numbers. Use ascending order.) Say the Monte Carlo simulation produced the provided simulation trial results. Use these results to determine the best order quantity. The best order quantity is (Type a whole number.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Suppose that a small candy store makes Valentine's Day gift boxes that cost $14.00 and sell for $21.00. In the past, at least 40 boxes have been sold by Valentine's Day, but the
actual amount is uncertain, and the owner has often run short or made too many. After the holiday, any unsold boxes are discounted 50% and are eventually sold. Set up and run a
Monte Carlo simulation assuming that demand is triangular with minimum value = 40, maximum value = 50, and most likely value = 47. Find the distribution of profit for order quantities
between 40 and 50 to identify the best order quantity. Use 20 simulation trials.
Click the icon to view a sample of 220 simulation trial results.
C
Say the values of the selling price, cost, and discount price are entered in cells B6, B7, and B8, respectively, and the demand, purchase quantity, quantity sold, and surplus quantity
are entered in cells B12, B13, B15, and B16, respectively. Then, for the Monte Carlo simulation, the quantity sold is = (B.B), the surplus quantity is
and the profit is =B15*B+B16*B-B13*B
(Type whole numbers. Use ascending order.)
Say the Monte Carlo simulation produced the provided simulation trial results. Use these results to determine the best order quantity.
The best order quantity is.
(Type a whole number.)
Transcribed Image Text:Simulation Results
41
42
43
44
45
47
48
49
50
$308.00
40
46
$280.00 $287.00 $294.00 $280.00 $308.00 $315.00 $322.00 $329.00 $304.50 $290.50 $308.00
$280.00 $287.00 $294.00 $301.00 $308.00 $294.00 $322.00 $329.00 $262.50 $322.00 $297.50
$280.00 $287.00 $294.00 $301.00 $308.00 $315.00 $280.00 $308.00 $325.50 $269.50 $329.00
$280.00 $287.00 $294.00 $301.00 $308.00 $304.50 $322.00 $329.00 $304.50 $343.00 $329.00
$280.00 $287.00 $294.00 $301.00 $308.00 $315.00 $290.50 $297.50 $273.00 $259.00 $297.50
$280.00 $287.00 $294.00 $301.00 $308.00 $315.00 $301.00 $329.00 $325.50 $322.00 $297.50
$280.00 $287.00 $283.50 $301.00 $308.00 $315.00 $322.00 $329.00 $336.00 $332.50
$280.00 $287.00 $294.00 $301.00 $308.00 $315.00 $301.00 $329.00 $283.50 $290.50 $297.50
$280.00 $287.00 $294.00 $301.00 $308.00 $315.00 $301.00 $276.50 $325.50 $332.50 $276.50
$280.00 $287.00 $294.00 $301.00 $308.00 $294.00 $290.50 $329.00 $273.00 $343.00 $255.50
$280.00 $287.00 $294.00 $301.00 $308.00 $315.00 $290.50 $266.00 $325.50 $259.00 $329.00
$280.00 $287.00 $294.00 $301.00 $308.00 $315.00 $322.00 $308.00 $315.00 $280.00 $329.00
$280.00 $287.00 $294.00 $301.00 $308.00 $315.00 $280.00 $308.00 $325.50 $311.50 $287.00
$280.00 $287.00 $294.00 $301.00 $308.00 $315.00 $322.00 $276.50 $283.50 $332.50 $276.50
$280.00 $287.00 $294.00 $301.00 $308.00 $315.00 $301.00 $297.50 $315.00 $269.50 $318.50
$280.00 $287.00 $294.00 $301.00 $308.00 $315.00 $301.00 $266.00 $273.00 $290.50 $287.00
$280.00 $287.00 $294.00 $301.00 $308.00 $273.00 $301.00 $308.00 $304.50 $332.50 $287.00
$280.00 $287.00 $294.00 $301.00 $308.00 $315.00 $322.00 $329.00 $325.50 $322.00 $308.00
$280.00 $287.00 $294.00 $301.00 $287.00 $315.00 $301.00 $329.00 $315.00 $280.00 $339.50
$280.00 $287.00 $294.00 $290.50 $308.00 $315.00 $322.00 $318.50 $304.50 $259.00 $318.50
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