Question: Verse Inc. sells virtual reality ( VR ) goggles, particularly targeting customers who like to play video games. Verse procures each pair of goggles for
Verse Inc. sells virtual reality VR goggles, particularly targeting customers who like to play video games. Verse procures each pair of goggles for $ from its supplier and sells each pair for
$ Monthly demand for the VR goggles is normally distributed with a mean of units and a standard deviation of units. At the beginning of each month, Verse orders enough goggles to
bring the inventory level up to goggles. If the monthly demand is less than Verse pays $ per goggles that remain in inventory. If the monthly demand exceeds Verse sells only
the pairs in stock. There is shortage cost of $ for each unit of demand that is unsatisfied to represent a "lossofgoodwill" among its customers.
A Build a model to estimate the average monthly profit from the VR goggles.
B Run simulation trials to estimate the expected average monthly profit.
C Analyze the runs to determine what is the proportion of months in which demand is completely satisfied?
Could you please show how you did it on excel. Thank you.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
