Question: Please solve in an Excel sheet with formulas! You are an inventory management consultant. You have been hired by Walmart to help optimize inventory management
Please solve in an Excel sheet with formulas!
You are an inventory management consultant. You have been hired by Walmart to help optimize
inventory management for their Dairy department. Your immediate task is building a Monte Carlo
simulation for sales of Meat, Seafood and Produce. The probabilities of monthly demand levels are:
The unit revenues and costs are given in the table below.
Each product has a separate display with an associated fixed monthly cost:
pts Build a table for the cumulative probability distribution for demand. It should be set up for use
with the VLOOKUP function, with the cumulative probabilities on the left.
pts Build a table for tracking sales over one year Jan Dec with separate columns for
Meat, Seafood and Produce. This will just be the randomized demand value for each item for each month
like in from the lab exercise on Monte Carlo simulations For this assignment, assume all demand
is actually met that is sales demand and there is no other inventory loss except through sales.
pts Build a table for tracking total revenues, costs, and profit for the year. This table should use the
information provided in your answer to above. Your table should calculate values for:
Total Revenue based on the combined sales of all three products over the year
Total Cost also based on combined sales, and including cost of goods sold and fixed costs
ProfitLoss total revenue minus total costs
pts Create a data table to generate runs of the simulation and calculate the average profit of the
simulation runs. As in previous assignments, this must be an actual data table structure to earn
full credit. Calculate the average profit over the simulation runs.
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