Question: Simulate the mini-mart situation described in Problem 45 of Chapter 11. Identify the best order quantity using a simulation with 100 trials. Data from Problem
Simulate the mini-mart situation described in Problem 45 of Chapter 11. Identify the best order quantity using a simulation with 100 trials.
Data from Problem 45 of Chapter 11
A gasoline mini-mart orders 25 copies of a monthly magazine. Depending on the cover story, demand for the magazine varies. The mini-mart purchases the magazines for $1.50 and sells them for $4.00. Any magazines left over at the end of the month are donated to hospitals and other health care facilities. Modify the newsvendor example spreadsheet to model this situation. Use what-if analysis to investigate the financial implications of this policy if the demand is expected to vary between 10 and 30 copies each month.
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Number of copies purchased 25 Purchase Cost 150 Sales Price 400 Demand 27 Number Sold 25 Number Left Over 0 Total Cost 3750 Total Revenue 10000 Total Profit 6250 Results will vary by simulation Averag... View full answer
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