A supermarket sells mobiles. It divides the selling season into Regular and Sale. Regular selling period starts form the first day of a month to the penultimate day of the month. The store forecasts that the demand for mobile during the regular period is normally distributed with a mean of 300 and a standard deviation of 50. During this period, mobiles are sold at a fixed price- $320 per mobile. The last day of the month is called Sale period. If there are leftovers at the end of the regular period, all the leftovers are disposed during the Sale period at a discounted bargain price which varies (continuous) uniformly between 150 and 200 both inclusive. The store has enough demand to absorb all the leftovers during the Sale period. In contrast, if there is a shortage of demand, the supermarket offers a coupon worth $30 to every unit of unmet demand. The store has an existing stocking policy of 320 mobiles a month. A wholesaler who supplies the phones to the supermarket charges $75 per mobile.

a. Simulate the operation for 17 months (Sheet1 of excel, Pressing F9 should simulate values)

b. Simulate the operation for 17 months using the following random numbers and based on the output handwritten answers tothe questions c through g.

(F9 is locked, use Sheet2 of excel, RD rows are the random numbers for the regular demand and SP random numbers are for the Sale price)

RD SP

0.09 0.85

0.74 0.73

0.31 0.97

0.49 0.88

0.42 0.91

0.18 0.71

0.22 0.40

0.93 0.55

0.51 0.88

0.06 0.45

0.31 0.69

0.95 0.34

0.49 0.93

0.39 0.27

0.17 0.65

0.89 0.56

0.62 0.76

c. Determine the average monthly revenue during regular selling season.

d. Determine the average monthly revenue during Sale season.

e. Determine the average expected monthly profit.

f. Determine the service level based on the average values of simulated months.

g. As a simulation analyst, what is your observation of the system and what are your recommendations to improve the profit.