Crystal Ball $$ decision table

This assignment uses the Yellow Define Decision variables. A similar example is given in the text $($Chapter $5).$ To run decision variables, you need to use the "More Tools..." icon, and select the Decision Table icon off the menu. It will ask you to select the target forecast $($select profit$),$ and then it will ask for the decision variables to iterate $($ROP and Q$).$

Model an inventory situation where demand is exponentially distributed with a mean demand of $100$ per day $($make an integer variable$).$

A screwy thing about Crystal Ball$$s exponential distribution is that you need to input the inverse of the obvious $($there is a reason coming from queuing theory$).$

You don$$t have to enter all $30$ demands through the green Define Assumption, you can use an Excel $($CrystalBall$)$ function $=$CB$.$Exponential$(\mathrm{.}01)$ for a mean exponentially distributed with a mean of $100.$ You can add an INT after the $=$ sign to make it integer. This function can be copied down the column, saving you a lot of typing. Note that the INT function drops all fractions $$ this biases monthly demand. Figure out how to model to avoid this bias.

Starting inventory is $100.$

Sales price is $$500$

Purchase price is $$100$

Holding cost is $$5/$item in inventory at the end of each day.

Ordering cost is $$200$ per order, and what is ordered at the end of each day is received before work the next morning.