Develop your own worksheet for the Butler inventory simulation model shown in Figure. Suppose that management prefers not to charge for loss of goodwill. Run the Butler inventory simulation model with replenishment levels of 110, 115, 120, and 125. What is your recommendation?

FIGURE EXCEL WORKSHEET FOR THE BUTLER INVENTORYPROBLEM

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PortaCom Risk Analysis Lil 3 Sel ling Price per Unit 4 Administrative Cost $249 5400,000 600,000 5 Advertising Cost 7 Direct Labor Cost wer Parts Cost (Uniform Distribution) $80 S100 Upper Smallest Value 9Random No. Random No. Cost per Unit Largest Value 0.0 12 13 14 15 0.3 0.7 0.9 $43 $44 $45 $46 $47 0.7 0.9 Demand (Normal Distribution) Mean Std Deviation 15000 4500 17 Simulation Trials 18 Direct Labor Parts Cost per Unit $85.36 91.68 93.35 $98.56 $88.36 First-Year Demand 17.366 12,900 20,686 0.888 14,259 20 21 Trial Cost per Un Profit 1,025,570 $461.828 $1.288,906 24 648,911 ($71.739) S1,110952 $703.118 45 516 517 18 519 520 521 496 497 498 499 $94.38 $90.85 90.37 92.50 19.257 14,920 13.471 18,614 43 1,056.847 523 524 525 526 527 Summary Statistics Mean Profit Standard Deviation Minimum Profit Maximum Profit Number of Losses Probability of Loss $698.457 ($785,234) $2.367.058