The optimal capacity level using simulation. Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Question

The Instant Paper Clip Office Supply Company sells and delivers office supplies to companies, schools, and agencies within a 50-mile radius of its warehouse. The office supply business is competitive, and the ability to deliver orders promptly is a big factor in getting new customers and maintaining old ones. (Offices typically order not when they run low on supplies, but when they completely run out. As a result, they need their orders immediately.) The manager of the company wants to be certain that enough drivers and vehicles are available to deliver orders promptly and that they have adequate inventory in stock. Therefore, the manager wants to be able to forecast the demand for deliveries during the next month. From the records of previous orders, management has accumulated the following data for the past 10 months: Month Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Orders 145 70 115 85 120 54 82 141 123 94 Compute the…

Answer 1

Question

Chapter 11, Problem 54P

a)

Summary Introduction

To determine: The optimal capacity level using simulation.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

b)

Summary Introduction

To determine: The value at which there will be 5 percent chance that the actual discounted profit will be less.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

c)

Summary Introduction

To determine: The way the optimal capacity level change when the company is risk averse.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

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The Instant Paper Clip Office Supply Company sells and delivers office supplies to companies, schools, and agencies within a 50-mile radius of its warehouse. The office supply business is competitive, and the ability to deliver orders promptly is a big factor in getting new customers and maintaining old ones. (Offices typically order not when they run low on supplies, but when they completely run out. As a result, they need their orders immediately.) The manager of the company wants to be certain that enough drivers and vehicles are available to deliver orders promptly and that they have adequate inventory in stock. Therefore, the manager wants to be able to forecast the demand for deliveries during the next month. From the records of previous orders, management has accumulated the following data for the past 10 months: Month Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Orders 145 70 115 85 120 54 82 141 123 94 Compute the…

The Instant Paper Clip Office Supply Company sells and delivers office supplies to companies, schools, and agencies within a 50-mile radius of its warehouse. The office supply business is competitive, and the ability to deliver orders promptly is a big factor in getting new customers and maintaining old ones. (Offices typically order not when they run low on supplies, but when they completely run out. As a result, they need their orders immediately.) The manager of the company wants to be certain that enough drivers and vehicles are available to deliver orders promptly and that they have adequate inventory in stock. Therefore, the manager wants to be able to forecast the demand for deliveries during the next month. From the records of previous orders, management has accumulated the following data for the past 10 months: Month: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Orders: 1230 1155 1263 1159 1361 1273 1147 1250 1356 1155 Create tables to support your answer: a. Compute the monthly…

Answer 2

Question

Chapter 11, Problem 54P

a)

Summary Introduction

To determine: The optimal capacity level using simulation.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

b)

Summary Introduction

To determine: The value at which there will be 5 percent chance that the actual discounted profit will be less.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

c)

Summary Introduction

To determine: The way the optimal capacity level change when the company is risk averse.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

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Answer 3

Question

Chapter 11, Problem 54P

a)

Summary Introduction

To determine: The optimal capacity level using simulation.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

b)

Summary Introduction

To determine: The value at which there will be 5 percent chance that the actual discounted profit will be less.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

c)

Summary Introduction

To determine: The way the optimal capacity level change when the company is risk averse.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

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Answer 4

Question

Chapter 11, Problem 54P

a)

Summary Introduction

To determine: The optimal capacity level using simulation.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

b)

Summary Introduction

To determine: The value at which there will be 5 percent chance that the actual discounted profit will be less.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

c)

Summary Introduction

To determine: The way the optimal capacity level change when the company is risk averse.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 54P

a)

Summary Introduction

To determine: The optimal capacity level using simulation.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

b)

Summary Introduction

To determine: The value at which there will be 5 percent chance that the actual discounted profit will be less.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

c)

Summary Introduction

To determine: The way the optimal capacity level change when the company is risk averse.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Answer 6

Chapter 11, Problem 54P

a)

Summary Introduction

To determine: The optimal capacity level using simulation.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Answer 7

Chapter 11, Problem 54P

a)

Summary Introduction

To determine: The optimal capacity level using simulation.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Answer 8

b)

Summary Introduction

To determine: The value at which there will be 5 percent chance that the actual discounted profit will be less.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Answer 9

b)

Summary Introduction

To determine: The value at which there will be 5 percent chance that the actual discounted profit will be less.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Answer 10

c)

Summary Introduction

To determine: The way the optimal capacity level change when the company is risk averse.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Answer 11

c)

Summary Introduction

To determine: The way the optimal capacity level change when the company is risk averse.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Answer 12

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Answer 23

Ch. 11.2 - If the number of competitors in Example 11.1...Ch. 11.2 - In Example 11.1, the possible profits vary from...Ch. 11.2 - Referring to Example 11.1, if the average bid for...Ch. 11.2 - See how sensitive the results in Example 11.2 are...Ch. 11.2 - In Example 11.2, the gamma distribution was used...Ch. 11.2 - Prob. 6P Ch. 11.2 - In Example 11.3, suppose you want to run five...Ch. 11.2 - In Example 11.3, if a batch fails to pass...Ch. 11.3 - Rerun the new car simulation from Example 11.4,...Ch. 11.3 - Rerun the new car simulation from Example 11.4,...

The optimal capacity level using simulation. Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Concept explainers

To determine: The optimal capacity level using simulation.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

To determine: The value at which there will be 5 percent chance that the actual discounted profit will be less.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

To determine: The way the optimal capacity level change when the company is risk averse.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Chapter 11 Solutions

The optimal capacity level using simulation. Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Concept explainers

To determine: The optimal capacity level using simulation. Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

To determine: The value at which there will be 5 percent chance that the actual discounted profit will be less. Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

To determine: The way the optimal capacity level change when the company is risk averse. Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Chapter 11 Solutions

To determine: The optimal capacity level using simulation.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

To determine: The value at which there will be 5 percent chance that the actual discounted profit will be less.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

To determine: The way the optimal capacity level change when the company is risk averse.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.