SHOW WORK STEP BY STEP IN EXCEL

Question Set 1.

You are an inventory management consultant. You have been hired by Costco to help optimize inventory management for their Poultry department. Your immediate task is building a Monte Carlo simulation for sales of Eggs, Chicken and Turkey. The probabilities of monthly demand levels are:

Probability	Eggs	Chicken	Turkey
0.05	184	268	288
0.10	200	299	318
0.15	224	302	330
0.05	240	310	350
0.15	258	345	362
0.10	280	368	376
0.15	318	378	392
0.10	304	400	413
0.10	358	411	450
0.05	374	444	490

The unit revenues and costs are given in the table below.

Product	Unit Revenue	Unit Cost
Eggs	$1.86	$1.18
Chicken	$2.79	$1.98
Turkey	$3.39	$2.15

Each product has a separate display with an associated fixed monthly cost:

Product	Fixed Monthly Display Cost
Eggs	$100
Chicken	$200
Turkey	$300

1. (5pts) 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.

2. (15pts) Build a table for tracking sales over one year (Jan 2021-Dec 2021) with separate columns for Eggs, Chicken and Turkey. This will just be the randomized demand value for each item for each month (like in 10.1.2 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.

3. (10pts) Build a table for tracking total revenues, costs, and profit for the year. This table should use the information provided in your answer to 2., 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)
• Profit/Loss (total revenue minus total costs)

4. (10pts) Create a data table to generate 50 runs of the simulation and calculate the average profit of the 50 simulation runs. As in previous assignments, this must be an actual data table structure to earn full credit. Calculate the average profit over the 50 simulation runs