Consider the Outsourcing Decision Model spreadsheet for an outsourcing decision model.We assume that the production $($demand$)$ volume is normally distributed with a mean of $1,000$ and a standard deviation of $100.$ For the unit cost, select the triangular distribution. It has a minimum value of $$150,$ most likely value of $$165,$ and a maximum value of $$190.$ The number of trials per simulation is equal to $5,000$ at a Sim. Random Seed of $1.$ Run the simulation and answer the following question$($s$)$ using the Analytic Solver Platform. $[$Hint: choose the closest value.$]$

Do all the calculations and keep them as reference.A B

Outsourcing Decision Model

Data

Manufactured In House

Fixed Cost $$60,000$

Unit Variable Cost $$130$

Purchased from Supplier

Unit Cost $$165$

Triangular random variate unit cost #NAME?

Demand Volume $$1,000$

Normal distribution demand volume $$1,120$

Model

Total Manufacturing Cost $190,000$

Total Purchased Cost $165,000$

Difference $$25,000\mathrm{.}00$

Decision Outsource