Question: As stated in Example 12.5, the critical fractile analysis is useful for finding the optimal order quantity, but it doesnt (at least by itself) show

As stated in Example 12.5, the critical fractile analysis is useful for finding the optimal order quantity, but it doesn’t (at least by itself) show the probability distribution of net profit. Use @RISK, as in Chapter 10, to explore this distribution. Actually, do it twice, once with the triangular demand distribution and its optimal order quantity and once with the normal demand distribution and its optimal order quantity. What can you say about the resulting distributions of profit? What can you say about the resulting mean profits? Could you use @RISK to confirm that these order quantities are indeed optimal? Explain how.

Step by Step Solution

3.41 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Model Simulation of Waltons Bookstore using RISK Cost data Unit cost Unit price Unit ref... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Excel file Icon

1497_60487dfb8d884_695291.xlsx

300 KBs Excel File

Students Have Also Explored These Related Practical Management Science Questions!