Although it is thought that the fixed cost of a product for the next year will be in the range of 3000-5500, a maximum of 10 USD and the demand for this product will be at least 80 thousand and at most 125 thousand, it is considered more realistic to realize the average of these instead of these limit values.  

a. Explain how a Monte Carlo simulation of the total cost can be made. 

b. How can best worst and 95% probability situations be found?

Answer rating: 100% (QA)

a The basis of aMonte Carlo simulationis that the probability of varying outcomes cannot be dete... View the full answer