The manager of an internet-based retailer, Moore's More, is trying to predict the revenue generated by each department in the next year. The manager has estimated the minimum and maximum growth rates possible for revenues in each department. The manager believes that any of the possible growth rates are equally likely to occur. These estimates are summarized in the table: DEPT. ELECTRONICS CURRENT REVENUE MIN. GROWTH RATE MAX. GROWTH RATE $6,342,213 2% 10% OFFICE SUPPLIES $1,203,231 -4% 5% SPORTING GOODS $4,367,342 -2% 6% TOYS $3,543,537 -1% 8% HOBBY SUPPLIES $4,723,135 4% 12% Currently, the total logistics costs are $5,321,776. The rate of change for logistics costs is Normally distributed with a mean of %2 with a standard deviation of %1. Create a spreadsheet to simulate the total profit that could occur in the coming year. Run 500 replications of the model and consider the following tasks: a. Construct a 95% confidence interval for the average level of total profit the manager could expect for the next year. b. According to your model, what are the chances that the total profit will be 5% larger than those in the next year.

The manager of an internet-based retailer, Moore's More, is trying to predict the revenue generated by each department in the next year. The manager has estimated the minimum and maximum growth rates possible for revenues in each department. The manager believes that any of the possible growth rates are equally likely to occur. These estimates are summarized in the table: DEPT. ELECTRONICS CURRENT REVENUE MIN. GROWTH RATE MAX. GROWTH RATE $6,342,213 2% 10% OFFICE SUPPLIES $1,203,231 -4% 5% SPORTING GOODS $4,367,342 -2% 6% TOYS $3,543,537 -1% 8% HOBBY SUPPLIES $4,723,135 4% 12% Currently, the total logistics costs are $5,321,776. The rate of change for logistics costs is Normally distributed with a mean of %2 with a standard deviation of %1. Create a spreadsheet to simulate the total profit that could occur in the coming year. Run 500 replications of the model and consider the following tasks: a. Construct a 95% confidence interval for the average level of total profit the manager could expect for the next year. b. According to your model, what are the chances that the total profit will be 5% larger than those in the next year.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

13
Provide a comprehensive outline detailing the process of allocating individuals and resources to each activity within the Work Breakdown Structure (WBS)?
I am writing an essay on a strategy for implementing a training program. Can you assist?
Exercise 1 Your Customers Are Using My Parking Lot! You own a hardware store that is located in a strip mall. Three months ago an Italian restaurant opened next door. Parking is limited and each respective business in the strip mall has a designated number of parking spaces in front. This is generally not a problem because your store has more customers during the day, while the restaurant is busier at night. The problem is on Friday and Saturday nights when your store is open later and the restaurant is busier. You are concerned because business at the restaurant has been increasing as the restaurant becomes more well known. Instructions: Implications of Negotiation
As a property manager, what could/would you do to reduce turnover vacancies? Why is this important?
What training methods should be used to train the supervisors, assuming approval of the proposal? Carol Burgess is a letter carrier and a part-time trainer of letter carriers for the U.S. Postal Service in a major city on the west coast. She trains all new letter carriers in her service area, which encompasses the northern half of her state. Over the past five years she has trained 318 new letter carriers. Typically, the training is offered prior to the new letter carrier’s entry onto the job, although sometimes it occurs shortly thereafter. The training program typically encompasses both the orientation of new employees to the U.S. Postal Service and the development of specific skills needed by the new letter carrier. The latter involves practice in casing mail (i.e., sorting) to appropriate locations of a case in preparation for delivery, reading maps, determining appropriate sequencing of delivery, and customer relations. The total training program takes three full days (one day of…
Newly appointed staff would commence work before the end of the You have been tasked to design an orientation/induction programme for them. Explain how you would have the programme run. State any challenge you are likely to encounter and recommend solutions.