Question
In August 2009, a car dealer is trying to determine how many 2010 cars to order. Each car ordered in August 2009 costs $16,000. The
In August 2009, a car dealer is trying to determine how many 2010 cars to order. Each car ordered in August 2009 costs $16,000. The demand for the dealers 2010 models has the probability distribution shown in the table below. Each car sells for $21,000. If the demand for 2010 cars exceeds the number of cars ordered in August 2009, the dealer must reorder at a cost of $18,000 per car. Excess cars can be disposed of at $13,000 per car.
Use simulation to compute the average profit and the standard deviation of the profit for an order quantity of 30.
Use simulation to compute the average profit and the standard deviation of the profit for an order quantity of 35.
Set seed number to 1 for both runs.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started