The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product wili be $45 per unit. Probability distribe for the purchase cost, the labor cost, and the transportation cost are estimated as follows. Procurement Cost ($) Labor Cost (8) Probability Transportation Cost ($) Probability Probability 10 0.25 20 0.10 0.75 11 0.40 22 0.20 0.25 12 0.35 24 0.40 25 0.30 (a) Construct a simulation model to estimate the average profit (in $) per unit and the variance of the profit per unit. (Use at least 1,000 trials. Round your answer to two decimal places.) average $0.00 variance What is a 95% confidence interval (in $) around this average? (Round your answers to two decimal places.) to $
Q: What are the advantages and disadvantages or the shortestprocessing time (SPT) rule?
A: The shortest processing time often called the SPT technique can be stated as the technique that woul...
Q: Prepare a plan for Art Hill that gets the firm back on a coursetoward improved profitabili ty. Be su...
A: A Small Introduction about Aggregate Planning Aggregate planning is a strategy for fostering a ge...
Q: b) As a Project Engineer, cost control is one of the areas that is pertinent to project budget. When...
A: Practically every one of the projects should be directed right all through to get the required and a...
Q: Wingman Distributing Company is expanding its supply chain to include a new distribution hub in Sout...
A: Estimated Expenditure means such aggregate as the Landlord may every now and then indicate similar t...
Q: Sarbucks has a large, global supply chain that must efficiently supply over 17,000 stores. Although ...
A: Enter the data in Excel as follows. Here, ATL = Atlanta BOS = Boston CHI = Chicago DAL = Dallas LA ...
Q: Please read the case and answer the questions at the end. Please respond to two of your peers. Do yo...
A: 1. What makes the position of teaching assistant different from many jobs frequently represented by ...
Q: Passenger miles flown on Northeast Airlines, a commuter firm serving the Boston hub, are shown for t...
A:
Q: Utikasn Ltd. purchase glass bowls for € 2.5 per unit or they can manufacture it with fixed cost of €...
A: Given: Glass bowl price = € 2.5 per unit Fixed cost = € 69,000 Variable cost = € 1.5 Demand = 1,01,0...
Q: 1) List and explain the phases that mark the life of a project.
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: timization algorithms help to e
A: What Is a Labor Optimization? Computer software has made it possible for huge enterprises with a lar...
Q: 2. Weick and Sutcliffe's model for high reliability organizations include the following components (...
A: High Reliability Organization (HROs) refer to the organizations that follows five principles in orde...
Q: The YT ltd. the output produced is of €47,67,000 and the input costs are material is € 1,20,000, ene...
A: Given: Output = € 47,67,000 material input = € 1,20,000 energy input = € 3,56,000 miscellaneous inpu...
Q: a Cybersecurity expert has determined ICS vulnerability would destroy 50 percent of the process asse...
A: Cost of vulnerability = 50% of process Asset = 50100×10,000,000=$5,000,000 Frequency of Vulnerabilit...
Q: Module: Principles of Purchasing & Supplies. Qn: Explain how the Push and Pull factor effect can af...
A: The goal of a push and pull distribution strategy is to guide your promotional path to market. Perha...
Q: Tsaltz Inc. of Hamilton, Ontario, is a distributor of starwars themed dog tags to pet store retailer...
A: EOQ is the quantity at which both ordering cost and holding cost becomes equal and the quantity help...
Q: in general, the review process takes approximately how long? One year or longer 3-6 months 2-3 month...
A: Question-in general, the review process takes approximately how long? One year or longer 3-6 months ...
Q: 2)For each project phase identified in 1(a) above, identify and describe at least one (1) major deli...
A: Project management is the management in which special skills and knowledge is required to develop an...
Q: Explain: Efficiency, Labor content, Takt time, Leveling demand.
A: Production is the process of manufacturing the finished products using raw materials and resources f...
Q: b) You are the project manager of a team which has been newly formed. Suppose you feel one of the te...
A: Organizations that are permitting their labor forces to work from a distance as the COVID-19 pandemi...
Q: You have been asked to assist in determining freight cost for the following shipment from TuJim Devi...
A: The detailed solution is given in Step 2.
Q: Solve Maximize: Z = 4X1 + 3X2 + 9X3 Subject to: 2X1 + 4X2 + 6X3 ≥ 15 6X1 + X2 + 6X3 ≥ 12 X1, X2, X3 ...
A: given, Maximize: Z = 4X1 + 3X2 + 9X3 Subject to: 2X1 + 4X2 + 6X3 ≥ 15 6X1 + X2 + 6X3 ≥ 12 X1, X2, X3...
Q: The EMV for option a is $
A: Expected monitory value indicating the value expecting from each decision while considering the prob...
Q: 5. A mixture of pellets is to be made containing x regular pellets, y large pellets and z extra larg...
A: given,
Q: bly process cha
A: Flow Process Chart: In a flow process chart, all of the activities and events under consideration ar...
Q: Question 2: Consider the following model: Minimize Z = 3x + 2x2, subject to 2x, + x z 10 -3x1 + 2x2 ...
A: a.
Q: For each project phase. identify and describe at least one (1) major deliverable (output) of the pha...
A: There are 5 basic phases in the project management process:- Project InitiationProject PlanningProje...
Q: sole-sourcing arrangements, customers involve suppliers
A: Sole-sourcing arrangement indicating a practice where the system working with a single service provi...
Q: Using the above data, solve the assembly-line balancing problem and calculate the efficiency of your...
A:
Q: Strategic Workforce Planning at Dutch Railway Infrastructure Manager- ProRail Traffic Control Intro...
A: A Small Introduction about Aggregate Planning Aggregate planning is a system for cultivating an o...
Q: a. Find the critical path.
A: A network diagram is a visual representation of a project which identifying the activity relationshi...
Q: In a serial system with two servers in sequence, suppose that the interarrival time follows exponent...
A: given, mean = 1 minute standard deviation =2 minute exponential distribution =3 min
Q: Benny the Barber owns a one-chair shop. At barber college, they told Benny that his customers would ...
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for...
Q: If you were the Vice-President of Quality Assurance, how would you evaluate the appropriate measure ...
A: INTRODUCTION: Any systematic method of verifying whether a product or service fulfills defined stand...
Q: Develop a POQ solution and calculate total relevantcosts for the data in the preceding table
A: given,
Q: PESTEL analysis and five Porter's forces analysis for an interior design business
A: PESTLE analysis gives significant attention to little subtleties about working difficulties. We are ...
Q: Director of legal services of ABC Company must decide whether to hire another full-time lawyer or to...
A: Given data is
Q: 2 units of V, 2 units of W, and 2 units of X. Finally, each unit of U requires 1 unit of Y and 3 ...
A: The word gross demand helps to find the essence of the need, the orderly structure that has been iss...
Q: calculate the productivity of the firm that produces beef products as it produces 6000 units in almo...
A: Productivity ability to manufacture the finished goods and services effectively and efficiently for ...
Q: Finance Applications. Refer to the PI Mortgages Example in the book about a firm that provides mortg...
A: Decision variable: Suppose-X1 = Amount ($ million) invested in First MortgagesX2 = Amount ($ million...
Q: I am a developer of single-family residential communities in Florida. I am trying to determine how m...
A: A Small Introduction about Project Management Project management is significant on the grounds t...
Q: . Which of these three locations yields the smallest load-distance score, based on Euclidean distanc...
A: A Small Introduction about Supply Chain Supply Chain Management can be characterized as the manag...
Q: Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the pa...
A:
Q: The sample mean , is 57 minutes , and the variance is 0.214 minutes , also the design required will ...
A: Given: Sample mean = 57 minutes Variance = 0.214 minutes upper specification = 61 minutes lower spec...
Q: Using the data set below, what would be the forecast for period 5 using the exponential smoothing me...
A: Forecasting is the process of estimating future sales or demand using previous data and information....
Q: The inventory turnover is calculated using the annual cost of goods sold and the aggregate inventory...
A: Inventory turnover indicating the number of time the inventory order or sold in a year. We can ident...
Q: Apply and evaluate cost-volume-profit relationships in business scenarios. Evaluate and Integrate t...
A: Cost-volume-profit analysis or commonly known as CVP analysis or known as break even analysis would ...
Q: calculate the productivity of the firm that produces beef products as it produces 6000 units in almo...
A:
Q: The cost component of a project must be carefully planned and managed throughout the life of a proje...
A: Project plans give clarity in the obligations of each team member and stakeholder in the project. Th...
Q: Cutey Barber Salon is a trendy barber salon that is located in a densely populated city called Maple...
A: Given information-
Q: 1. Food trucks have become a common sight on American campuses. They serve scores of hungry stud...
A: 3-period moving average forecast =At-1+At-2+At-33 Exponential smoothing forecast, Ft+1 = αAt+(1-α)Ft...
2
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- W. L. Brown, a direct marketer of womens clothing, must determine how many telephone operators to schedule during each part of the day. W. L. Brown estimates that the number of phone calls received each hour of a typical eight-hour shift can be described by the probability distribution in the file P10_33.xlsx. Each operator can handle 15 calls per hour and costs the company 20 per hour. Each phone call that is not handled is assumed to cost the company 6 in lost profit. Considering the options of employing 6, 8, 10, 12, 14, or 16 operators, use simulation to determine the number of operators that minimizes the expected hourly cost (labor costs plus lost profits).A martingale betting strategy works as follows. You begin with a certain amount of money and repeatedly play a game in which you have a 40% chance of winning any bet. In the first game, you bet 1. From then on, every time you win a bet, you bet 1 the next time. Each time you lose, you double your previous bet. Currently you have 63. Assuming you have unlimited credit, so that you can bet more money than you have, use simulation to estimate the profit or loss you will have after playing the game 50 times.You now have 10,000, all of which is invested in a sports team. Each year there is a 60% chance that the value of the team will increase by 60% and a 40% chance that the value of the team will decrease by 60%. Estimate the mean and median value of your investment after 50 years. Explain the large difference between the estimated mean and median.
- It costs a pharmaceutical company 75,000 to produce a 1000-pound batch of a drug. The average yield from a batch is unknown but the best case is 90% yield (that is, 900 pounds of good drug will be produced), the most likely case is 85% yield, and the worst case is 70% yield. The annual demand for the drug is unknown, with the best case being 20,000 pounds, the most likely case 17,500 pounds, and the worst case 10,000 pounds. The drug sells for 125 per pound and leftover amounts of the drug can be sold for 30 per pound. To maximize annual expected profit, how many batches of the drug should the company produce? You can assume that it will produce the batches only once, before demand for the drug is known.A common decision is whether a company should buy equipment and produce a product in house or outsource production to another company. If sales volume is high enough, then by producing in house, the savings on unit costs will cover the fixed cost of the equipment. Suppose a company must make such a decision for a four-year time horizon, given the following data. Use simulation to estimate the probability that producing in house is better than outsourcing. If the company outsources production, it will have to purchase the product from the manufacturer for 25 per unit. This unit cost will remain constant for the next four years. The company will sell the product for 42 per unit. This price will remain constant for the next four years. If the company produces the product in house, it must buy a 500,000 machine that is depreciated on a straight-line basis over four years, and its cost of production will be 9 per unit. This unit cost will remain constant for the next four years. The demand in year 1 has a worst case of 10,000 units, a most likely case of 14,000 units, and a best case of 16,000 units. The average annual growth in demand for years 2-4 has a worst case of 7%, a most likely case of 15%, and a best case of 20%. Whatever this annual growth is, it will be the same in each of the years. The tax rate is 35%. Cash flows are discounted at 8% per year.Play Things is developing a new Lady Gaga doll. The company has made the following assumptions: The doll will sell for a random number of years from 1 to 10. Each of these 10 possibilities is equally likely. At the beginning of year 1, the potential market for the doll is two million. The potential market grows by an average of 4% per year. The company is 95% sure that the growth in the potential market during any year will be between 2.5% and 5.5%. It uses a normal distribution to model this. The company believes its share of the potential market during year 1 will be at worst 30%, most likely 50%, and at best 60%. It uses a triangular distribution to model this. The variable cost of producing a doll during year 1 has a triangular distribution with parameters 15, 17, and 20. The current selling price is 45. Each year, the variable cost of producing the doll will increase by an amount that is triangularly distributed with parameters 2.5%, 3%, and 3.5%. You can assume that once this change is generated, it will be the same for each year. You can also assume that the company will change its selling price by the same percentage each year. The fixed cost of developing the doll (which is incurred right away, at time 0) has a triangular distribution with parameters 5 million, 7.5 million, and 12 million. Right now there is one competitor in the market. During each year that begins with four or fewer competitors, there is a 25% chance that a new competitor will enter the market. Year t sales (for t 1) are determined as follows. Suppose that at the end of year t 1, n competitors are present (including Play Things). Then during year t, a fraction 0.9 0.1n of the company's loyal customers (last year's purchasers) will buy a doll from Play Things this year, and a fraction 0.2 0.04n of customers currently in the market ho did not purchase a doll last year will purchase a doll from Play Things this year. Adding these two provides the mean sales for this year. Then the actual sales this year is normally distributed with this mean and standard deviation equal to 7.5% of the mean. a. Use @RISK to estimate the expected NPV of this project. b. Use the percentiles in @ RISKs output to find an interval such that you are 95% certain that the companys actual NPV will be within this interval.
- Software development is an inherently risky and uncertain process. For example, there are many examples of software that couldnt be finished by the scheduled release datebugs still remained and features werent ready. (Many people believe this was the case with Office 2007.) How might you simulate the development of a software product? What random inputs would be required? Which outputs would be of interest? Which measures of the probability distributions of these outputs would be most important?A new edition of a very popular textbook will be published a year from now. The publisher currently has 1000 copies on hand and is deciding whether to do another printing before the new edition comes out. The publisher estimates that demand for the book during the next year is governed by the probability distribution in the file P10_31.xlsx. A production run incurs a fixed cost of 15,000 plus a variable cost of 20 per book printed. Books are sold for 190 per book. Any demand that cannot be met incurs a penalty cost of 30 per book, due to loss of goodwill. Up to 1000 of any leftover books can be sold to Barnes and Noble for 45 per book. The publisher is interested in maximizing expected profit. The following print-run sizes are under consideration: 0 (no production run) to 16,000 in increments of 2000. What decision would you recommend? Use simulation with 1000 replications. For your optimal decision, the publisher can be 90% certain that the actual profit associated with remaining sales of the current edition will be between what two values?The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows. ProcurementCost ($) Probability LaborCost ($) Probability Transportation Cost ($) Probability 10 0.20 20 0.15 3 0.75 11 0.45 22 0.20 5 0.25 12 0.35 24 0.35 25 0.30 Construct a simulation model to estimate the average profit (in $) per unit and the variance of the profit per unit. (Use at least 1,000 trials. Round your answer to two decimal places. Use the values you enter to make later calculations.) average$ variance What is a 95% confidence interval (in $) around this average? (Round your answers to two decimal places.) $ to $ (e) Why is the simulation approach to risk analysis preferable to generating a variety of what-if scenarios? A simulation model does…
- The management of Brinkley Corporation is interested in using simulation to estimate the profit (in $) per unit for a new product. The selling price for the product will be $46 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated in the following table. Procurement Cost($) Probability Labor Cost ($) Probability Transportation Cost ($) Probability 10 0.25 20 0.10 3 0.75 11 0.45 22 0.25 5 0.25 12 0.30 24 0.35 25 0.30 (a) Compute profit (in $) per unit for the base-case scenario. x /unit $ 7 (b) Compute profit (in $) per unit for the worst-case scenario. x /unit $ 3 (c) Compute profit (in $) per unit for the best-case scenario. $ 12 ✓ /unit (d) Construct a simulation model to estimate the mean profit (in $) per unit. (Use at least 1,000 trials. Round your answer to two decimal places.) $ 7.12 (e) Why is the simulation approach to risk analysis preferable to generating a variety of what-if scenarios? Simulation will provide a…The management of a company is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Labor Cost Transportation Cost ($) Procurement Probability Probability Probability Cost ($) ($) 10 0.25 20 0.10 3 0.75 11 0.45 22 0.25 0.25 12 0.30 24 0.35 25 0.30 What is the profit per unit for the best-case scenario?The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: ProcurementCost ($) Probability Labor Cost ($) Probability TransportationCost ($) Probability 10 0.25 20 0.10 3 0.75 11 0.45 22 0.25 5 0.25 12 0.30 24 0.35 25 0.30 Compute profit per unit for the base-case, worst-case, and best-case.Profit per unit for the base-case: $ fill in the blank 1Profit per unit for the worst-case: $ fill in the blank 2Profit per unit for the best-case: $ fill in the blank 3 Construct a simulation model to estimate the mean profit per unit. If required, round your answer to the nearest cent.Mean profit per unit = $ fill in the blank 4 Why is the simulation approach to risk analysis preferable to generating a variety of what-if…