Brenda's Bicycle and Surfboard Rentals leases quad-bikes each day from a supplier and rents them to customers
Question:
Brenda's Bicycle and Surfboard Rentals leases quad-bikes each day from a supplier and rents them to customers who use them along Seawall Boulevard in Galveston, Texas. Each day, Brenda leases 30 quad-bikes from her supplier at a cost of $4 per quad-bike. She then rents them to her customers for $15 per day. Rental demand follows the normal distribution, with a mean of 30 quad-bikes and a standard deviation of 6 quad-bikes. (In your model use integers for all demands.)
Simulate this leasing policy for a month (30 days) of operation to calculate the total monthly profit. Replicate this calculation N times. What is the average monthly profit?
Brenda would like to evaluate the average monthly profit if she leases 25, 30, 35, and 40 quad-bikes. What is your recommendation? Why?
Step by Step Answer:
Quantitative Analysis for Management
ISBN: 978-0134543161
13th edition
Authors: Barry Render, Ralph M., Jr. Stair, Michael E. Hanna, Trevor S. Hale