Question: Among the logistics performance indicators, we can use the transportation costs as a percentage of the sales, which gives us a general overview of the
Among the logistics performance indicators, we can use the transportation costs as a percentage of the sales, which gives us a general overview of the transportation costs within the company’s revenue. We can calculate it as the total transportation costs divided by the net revenue, multiplied by 100. The total transportation costs for a group of companies of a certain sector can be represented by a normal distribution with mean 4.5 million and standard deviation 0.6. Conversely, the net revenue can be represented by a normal distribution with mean 75 million and standard deviation 10. Calculate the probability of this indicator being greater than 7% using the Monte Carlo simulation.
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