Question: Please solve the following simulation problem using Excel; provide screenshots for formulas: B&C clothing stores is trying to determine how many Karen Michelle dresses to
Please solve the following simulation problem using Excel; provide screenshots for formulas:
B&C clothing stores is trying to determine how many Karen Michelle dresses to order for the spring season. Demand for the dresses is assumed to follow a normal distribution with a mean of and standard deviation of The contract between Karen Michelle and B&C works as follows. At the beginning of the season, B&C reserves X units of capacity. B&C must take delivery for at least X dresses and can, if desired, take delivery on up to X dresses. Each dress sells for $ and Karen Michelle charges $ per dress. If B&C does not take delivery on all X dresses, it owns Karen Michelle a $ penalty for each unit of reserved capacity that is unused. For example, if B&C orders dresses and demand is for dresses, B&C will receive dresses and owe Karen Michelle $$ How many units of capacity should B&C reserve to maximize its expected profits? Use trial values of to dresses in increments of
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