(All answers were generated using 1,000 trials and native Excel functionality.) Galaxy Co. sells virtual reality...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(All answers were generated using 1,000 trials and native Excel functionality.) Galaxy Co. sells virtual reality (VR) goggles targeted to customers who like to play video games. Galaxy procures each pair of goggles for $150 from its supplier and sells each pair of goggles for $300. Monthly demand for the VR goggles is a normal random variable with a mean of 140 units and a standard deviation of 35 units. At the beginning of each month, Galaxy orders enough goggles from its supplier to bring the inventory level up to 120 goggles. If the monthly demand is less than 120, Galaxy pays $20 per pair of goggles that remains in inventory at the end of the month. If the monthly demand exceeds 120, Galaxy sells only the 120 pairs of goggles in stock. Galaxy assigns a shortage cost of $40 for each unit of demand that is unsatisfied to represent a loss-of-goodwill among its customers. Management would like to use a simulation model to analyze this situation. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Generate trials on a new worksheet. Download.spreadsheet galaxy-26666c.xlsx a. What is the average monthly profit resulting from its policy of stocking 120 routers at the beginning of each month? Round your answer to the nearest dollar 19200 b. What is the proportion of months in which demand is completely satisfied? Round your answer to the nearest whole number 34% c. Use the simulation model to compare the profitability of monthly replenishment levels of 105, 120, and 175 routes. Which monthly replenishment level maximizes profitability? 175 a. What is the average monthly profit resulting from its policy of stocking 120 routers at the beginning of each month? Round your answer to the nearest $ 19200 b. What is the proportion of months in which demand is completely satisfied? Round your answer to the nearest whole number. 34% c. Use the simulation model to compare the profitability of monthly replenishment levels of 105, 120, and 175 routers. Which monthly replenishment level maximizes profitability? 175 Use the corresponding 95% confidence intervals on the average profit to make your comparison. Round your answers to the nearest dollar Lower Bound: S Upper Bound: S Galaxy Co. Parameters Wholesale Price Retail Price Gross Profit per Unit $150 $300 $150 Holding Cost per Unit $20 Shortage Cost per Unit $40 Monthly Demand (normal) Mean 140 St. Dev 35.0 (All answers were generated using 1,000 trials and native Excel functionality.) Galaxy Co. sells virtual reality (VR) goggles targeted to customers who like to play video games. Galaxy procures each pair of goggles for $150 from its supplier and sells each pair of goggles for $300. Monthly demand for the VR goggles is a normal random variable with a mean of 140 units and a standard deviation of 35 units. At the beginning of each month, Galaxy orders enough goggles from its supplier to bring the inventory level up to 120 goggles. If the monthly demand is less than 120, Galaxy pays $20 per pair of goggles that remains in inventory at the end of the month. If the monthly demand exceeds 120, Galaxy sells only the 120 pairs of goggles in stock. Galaxy assigns a shortage cost of $40 for each unit of demand that is unsatisfied to represent a loss-of-goodwill among its customers. Management would like to use a simulation model to analyze this situation. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Generate trials on a new worksheet. Download.spreadsheet galaxy-26666c.xlsx a. What is the average monthly profit resulting from its policy of stocking 120 routers at the beginning of each month? Round your answer to the nearest dollar 19200 b. What is the proportion of months in which demand is completely satisfied? Round your answer to the nearest whole number 34% c. Use the simulation model to compare the profitability of monthly replenishment levels of 105, 120, and 175 routes. Which monthly replenishment level maximizes profitability? 175 a. What is the average monthly profit resulting from its policy of stocking 120 routers at the beginning of each month? Round your answer to the nearest $ 19200 b. What is the proportion of months in which demand is completely satisfied? Round your answer to the nearest whole number. 34% c. Use the simulation model to compare the profitability of monthly replenishment levels of 105, 120, and 175 routers. Which monthly replenishment level maximizes profitability? 175 Use the corresponding 95% confidence intervals on the average profit to make your comparison. Round your answers to the nearest dollar Lower Bound: S Upper Bound: S Galaxy Co. Parameters Wholesale Price Retail Price Gross Profit per Unit $150 $300 $150 Holding Cost per Unit $20 Shortage Cost per Unit $40 Monthly Demand (normal) Mean 140 St. Dev 35.0
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
The following are selected transactions of Bridgeport Department Store Ltd. for the current year ended December 31. Bridgeport is a private company operating in the province of Manitoba where PST is...
-
Della Bee Company purchased a manufacturing plant building 10 years ago for $1,300,000. The building has been depreciated using the straight-line method with a 30-year useful life and 10% residual...
-
Suppose that a differentiable functional f on an open set S n is quasiconcave. At every regular point f(x0) 0, A restricted form of quasiconcavity is useful in optimization (see section 5.4.3). A...
-
Prior to the Tax Cuts and Jobs Act of 2018 (TCJA), multinational firms domiciled in the United States did not have to pay U.S. income taxes on foreign earnings, unless those earnings were returned...
-
How do managers use the concept of cost-benefit during the communicating phase of the management process?
-
Put together an essay on Executive Skills . Make sure you have a thesis sentence in your paragraph.In two supporting paragraphs explain how executive skills can be used in hospitality careers. The...
-
Use the complex form to find the Fourier integral representation of the function. [3 |x| <1 f(x) = { 0 x>1
-
Solve each compound inequality. Graph each solution set, and write the solution set in interval notation or indicate that the solution is the empty set - x - 1 2 > - 2 and 5 ( x - 3 ) + 6 x > - 1 4
-
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 600 units @ $ 7 = $4,200...
-
A U.S. consumer observes that a golf club costs $300. Currently in the spot market, 1 euro can be exhanged for $1.3602. If purchasing power parity (PPP) holds, how many euros should you expect to pay...
-
Considerations in team selection and the emphasis on dominant motivators and emotional intelligence are admirable. Have you encountered instances where these specific characteristics significantly...
-
Server Properties: Station A has one machine with a processing time ranging from two to eight minutes and a likely (modal) time of five minutes. Station B has two machines, each with a processing...
-
(1) Is the "true object test a useful mechanism for distinguishing sales of tangible personal property from sales of services or intangibles? Does it have a high predictive value, i.e., would you...
-
A firm has the following balance sheet: Assets Cash Accounts receivable Inventory Plant and equipment $ 15,000 150,000 92,000 170,000 $427,000 Liabilities and Equity Accounts payable Long-term debt...
-
The following information is taken from the annual report of the Walgreens Boots Alliance, Inc..: Walgreens uses LIFO to value its inventory. Restate the companys financial results for 2015 assuming...
-
The following information is taken from the annual report of The Coca-Cola Company: Using this information, calculate the accounts payable turnover ratio and the days payable period for 2015 and...
-
The following information is taken from the annual report of The Claremont Corporation: The company uses the LIFO method to value its inventory. In addition, the footnotes to the companys annual...
Study smarter with the SolutionInn App