2. (15%) Simulate the following scenario and identify the Shortage/Overage costs: We are printing newspapers for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2. (15%) Simulate the following scenario and identify the Shortage/Overage costs: We are printing newspapers for the following 30 days (News Vendor Model). The shortage cost is $1; overage cost is $0.5. From the historical data, the mean demand = 10,000 units with standard deviation 1,000, normally distributed. To simulate in Excel, generate 1 random variable with 30 random variates and Random Seed = 789 to represent Demand of the next 30 days. Question: Based on the simulated demands, what would be the 30-day average of [Shortage Cost + Overage Cost] if we print Q = 9,500 units every day for the 30 simulated days? What if Q= 10,000? What if Q= 10,500? What if Q= 11,000? What if Q= 11,500? Plot the results with Q as the x-axis and Average Cost as the y-axis. What would be the Q that minimizes the cost? 2. (15%) Simulate the following scenario and identify the Shortage/Overage costs: We are printing newspapers for the following 30 days (News Vendor Model). The shortage cost is $1; overage cost is $0.5. From the historical data, the mean demand = 10,000 units with standard deviation 1,000, normally distributed. To simulate in Excel, generate 1 random variable with 30 random variates and Random Seed = 789 to represent Demand of the next 30 days. Question: Based on the simulated demands, what would be the 30-day average of [Shortage Cost + Overage Cost] if we print Q = 9,500 units every day for the 30 simulated days? What if Q= 10,000? What if Q= 10,500? What if Q= 11,000? What if Q= 11,500? Plot the results with Q as the x-axis and Average Cost as the y-axis. What would be the Q that minimizes the cost?
Expert Answer:
Answer rating: 100% (QA)
The 30day average of Shortage Cost Overage Cost for e... View the full answer
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
Posted Date:
Students also viewed these human resource management questions
-
The following scenario and analytical information describe a company. Three sets of facts are presented about this company. Perform a brainstorming analysis identifying all the factors that will...
-
The following scenario and analytical information describe a company. Three sets of facts are presented about this company. At the end of each set, perform a brainstorming analysis identifying all...
-
Consider the following scenario and calculate beginning UCC, CCA, ending UCC, after-tax incremental cash flow, and CCA tax shield every year. Annual incremental cash flow includes the lost revenue of...
-
Computer Technologies provides maintenance service for computers and office equipment for companies throughout the Northeast. The sales manager is elated because she closed a $300,000 three-year...
-
The tax law provides four methods of cost recovery for assets: (1) Immediate deduction of the total cost when paid or incurred; (2) Deferral of cost until the property is sold or otherwise disposed...
-
The financial statements of adidas (DEU) and Puma (DEU) are presented in Appendices B and C, respectively. The complete annual reports, including the notes to the financial statements, are available...
-
Indicate by letters the type of fraud committed: Check tampering (CT) Cash register scheme (CR) Expense scheme (E) Bribe (B) Fraudulent financial reporting (F) Here is an example: CT Employee writes...
-
You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: If the appropriate discount rate on these projects is 10 percent, which would be...
-
How does an automobile company install a line system? Explain its benefits. How does a company install a job shop? Explain its benefits.
-
How would the Highest interest rate to the Lowest credit card payment method apply a $1200 payment to a card with an outstanding balance of $2000 broken down as follows: Transaction Rate Balance...
-
Exaplex Ltd uses job order costing. It started January 2014 with $240,000 of raw materials and $300,000 of finished goods. There was no work-in-progress as at 1 January 2014. During that month,...
-
Imagine that you work for a university as the head of transportation. You want to encourage people to take the bus rather than park on campus because spots are limited. Prepare agenda slides for two...
-
Provide a detailed description of the JDBC three-tier model and its function.
-
To perform an insert, update or delete operation, the method(s) should be used. a. executeUpdate() b. executeQuery() c. executeQuery() and execute() d. executeQuery() and executeUpdate()
-
Think about presentations you have given in the past. Identify one that makes you feel proud. Write a list of what you did that contributed to your success. Try to be specific. What and how did you...
-
Explain the operational sequence of retrieving results from a returned ResultSet object.
-
How to put the domain name before the username? Window Server 2016 Standard Evaluation Here is my homework required: System > Control Panel System and Security System Control Panel Home Device...
-
Assessing simultaneous changes in CVP relationships Braun Corporation sells hammocks; variable costs are $75 each, and the hammocks are sold for $125 each. Braun incurs $240,000 of fixed operating...
-
A firm is considering two mutually exclusive projects, as follows. Determine which project should be accepted if the discount rate is 15 percent. Use the chain replication approach. Assume both...
-
Calculate the effective annual cost of a one-year $2-million operating line of credit. The firm borrowed $1.2 million for the first five months of the year and reduced the loan amount to $500,000 for...
-
A firm wishes to raise funds in the following proportions: 20 percent debt, 20 percent P/S, and 60 percent CE (common equity). Assume the cost of internally generated funds is 15 percent. Annual...
-
Take the population in the table and perform the following (use sampling without replacement and a standard deviation of the recorded amounts of 20), a. Determine the sample size for a classical...
-
During the planning of the audit of Strong Company, the partner in charge of the audit was discussing sampling plans with a manager and a senior. The discussion centered on the potential use of...
-
In the following situations solve the problems and answer the questions. a. Non statistical sampling is used. The number of items in the population is 1,000 , and the recorded amount on the books is...
Study smarter with the SolutionInn App