Selling mobiles, Jumbo earns a revenue of AED 500 per mobile. This revenue is the amount...

 

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Selling mobiles, Jumbo earns a revenue of AED 500 per mobile. This revenue is the amount after deducting the cost of mobile. It incurs a holding cost of AED 25 per mobile per month if a stocked mobile is not sold. Holding cost is a portion of rent, insurance and others. Assume that the unsold units are not carried over to the next period. The supplier takes them. If there is a shortage, the market assigns a good will cost of AED35 a mobile. The store has a stocking policy of 240 mobiles a month. The demand for mobile is normally distributed with a mean of 300 and standard deviation of 50. Simulate the operation for 15 months and determine the mean expected net profit, standard deviation of the net profit and service level. Complete the missing entries. (Roundup the demand to the next whole number) Random Month Demand Stock Sold Revenue Holding cost number 0.77 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0.31 0.23 0.91 0.09 0.47 0.84 0.57 0.16 0.01 0.25 0.07 0.01 0.31 0.06 You may expect some questions like the following. What is the net profit of the supermarket? What is the standard deviation (sample) of the profit? What is the service level? Shortage cost Net profit Does the service level acceptable to the supermarket? If yes/no, explain why? Why not? (Hints: if the service level is 90or above say good, acceptable) If the supermarket wants to achieve, a service level of 95%, how many mobiles the company should stock every month? (Hints: use goalscck) Selling mobiles, Jumbo earns a revenue of AED 500 per mobile. This revenue is the amount after deducting the cost of mobile. It incurs a holding cost of AED 25 per mobile per month if a stocked mobile is not sold. Holding cost is a portion of rent, insurance and others. Assume that the unsold units are not carried over to the next period. The supplier takes them. If there is a shortage, the market assigns a good will cost of AED35 a mobile. The store has a stocking policy of 240 mobiles a month. The demand for mobile is normally distributed with a mean of 300 and standard deviation of 50. Simulate the operation for 15 months and determine the mean expected net profit, standard deviation of the net profit and service level. Complete the missing entries. (Roundup the demand to the next whole number) Random Month Demand Stock Sold Revenue Holding cost number 0.77 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0.31 0.23 0.91 0.09 0.47 0.84 0.57 0.16 0.01 0.25 0.07 0.01 0.31 0.06 You may expect some questions like the following. What is the net profit of the supermarket? What is the standard deviation (sample) of the profit? What is the service level? Shortage cost Net profit Does the service level acceptable to the supermarket? If yes/no, explain why? Why not? (Hints: if the service level is 90or above say good, acceptable) If the supermarket wants to achieve, a service level of 95%, how many mobiles the company should stock every month? (Hints: use goalscck)

Answer rating: 100% (QA)

Simulation of Supermarket Mobile Sales Month Random Number Demand Stock Sold Revenue ... View the full answer