In August, Walton Bookstore must decide how many of next year's nature calendars to order. Each...

  

Transcribed Image Text:

In August, Walton Bookstore must decide how many of next year's nature calendars to order. Each calendar costs the bookstore $7,5 and is sold for $10. After February 1, all unsold calendars will be returned to the publisher for a refund of $2,5 per calendar. Walton believes that the number of calendars it can sell by February 1 follows the probability distribution shown in table below. Walton wants to develop a simulation model to help it decide how many calendars to order. (z value = 1,96) A B 1 Simulation of Walton's bookstore 2 3 4 5 Cost data Unit cost Unit price Unit refund $7,50 $10,00 $2,50 Decision variable Order quantity 6 7 8 9 10 11 Summary measures for simulation below 12 Average profit 13 Stdev of profit 14 Minimum profit 15 Maximum profit 16 200 с $182,75 $330,99 -$250,00 $500,00 D E Demand distribution Cum prob dist 0,00 0,31 0,51 0,81 0,96 0,30 0,50 0,80 0,95 1,00 F $162,23 $203,27 Demand 100 150 200 250 300 95% confidence interval for expected profit Lower limit Upper limit Probability 0,30 0,20 0,30 0,15 0,05 H 17 18 19 20 21 22 23 24 25 26 27 28 1012 1013 1014 1015 1016 1017 1018 1010 Simulation Replication Random # Demand 250 150 200 100 100 150 250 300 100 200 200 200 250 150 250 100 100 1 2 10 3 5 6 7 8 9 996 997 998 999 1000 0,8376 0,3785 0,7690 0,2474 0,2712 0,3154 0,8458 0,9952 0,2977 0,7995 994 0,5515 995 0,5809 0,9040 0,3386 0,9018 0,2661 0,2343 12. Write the formula in cell B19. (4 p) 13. Write the formula in cell C19. (4 p) Revenue $2.000 $1.500 $2.000 $1.000 $1.000 $1.500 $2.000 $2.000 $1.000 $2.000 $2.000 $2.000 $2.000 $1.500 $2.000 $1.000 $1.000 Cost $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 Refund SO $125 $0 $250 $250 $125 SO $0 $250 SO $0 $0 $0 $125 $0 $250 $250 Profit $500 $125 $500 -$250 -$250 $125 $500 $500 -$250 $500 $500 $500 $500 $125 $500 -$250 -$250 In August, Walton Bookstore must decide how many of next year's nature calendars to order. Each calendar costs the bookstore $7,5 and is sold for $10. After February 1, all unsold calendars will be returned to the publisher for a refund of $2,5 per calendar. Walton believes that the number of calendars it can sell by February 1 follows the probability distribution shown in table below. Walton wants to develop a simulation model to help it decide how many calendars to order. (z value = 1,96) A B 1 Simulation of Walton's bookstore 2 3 4 5 Cost data Unit cost Unit price Unit refund $7,50 $10,00 $2,50 Decision variable Order quantity 6 7 8 9 10 11 Summary measures for simulation below 12 Average profit 13 Stdev of profit 14 Minimum profit 15 Maximum profit 16 200 с $182,75 $330,99 -$250,00 $500,00 D E Demand distribution Cum prob dist 0,00 0,31 0,51 0,81 0,96 0,30 0,50 0,80 0,95 1,00 F $162,23 $203,27 Demand 100 150 200 250 300 95% confidence interval for expected profit Lower limit Upper limit Probability 0,30 0,20 0,30 0,15 0,05 H 17 18 19 20 21 22 23 24 25 26 27 28 1012 1013 1014 1015 1016 1017 1018 1010 Simulation Replication Random # Demand 250 150 200 100 100 150 250 300 100 200 200 200 250 150 250 100 100 1 2 10 3 5 6 7 8 9 996 997 998 999 1000 0,8376 0,3785 0,7690 0,2474 0,2712 0,3154 0,8458 0,9952 0,2977 0,7995 994 0,5515 995 0,5809 0,9040 0,3386 0,9018 0,2661 0,2343 12. Write the formula in cell B19. (4 p) 13. Write the formula in cell C19. (4 p) Revenue $2.000 $1.500 $2.000 $1.000 $1.000 $1.500 $2.000 $2.000 $1.000 $2.000 $2.000 $2.000 $2.000 $1.500 $2.000 $1.000 $1.000 Cost $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 Refund SO $125 $0 $250 $250 $125 SO $0 $250 SO $0 $0 $0 $125 $0 $250 $250 Profit $500 $125 $500 -$250 -$250 $125 $500 $500 -$250 $500 $500 $500 $500 $125 $500 -$250 -$250

Answer rating: 100% (QA)

The images you shared show a simulation of Waltons Bookstores decisionmaki... View the full answer