The results from a simulation run are inherently random. This problem will demonstrate this fact and investigate the impact of the number of trials on this randomness. Consider the example involving Freddie the newsboy that was introduced in Sec. 20.6. The spreadsheet model is available in this chapter’s Excel files on the book’s website. When using ASPE, make sure that the Monte Carlo sampling method is chosen in Simulation Options. Use an order quantity of 60.
(a) Set the trials per simulation to 100 in Simulations Options and run the simulation of Freddie’s problem five times. Note the mean profit for each simulation run.
(b) Repeat part (a) except set the number of trials per simulation to 1,000 in Simulation Options.
(c) Compare the results from part (a) and part (b) and comment on any differences.