Instructions

- Do the two problems here: A and B. Problem A is a variation of the Sanotronics problem solved in class. Please read the problem description provided in the textbox thoroughly before you start working on the Excel sheet.

- Use the random numbers on the templates provided. As you will notice, most of the rows in the simulation tables are hidden for easy navigation. Please keep them hidden. On the other hand, if you are getting error messages in visible cells, you may want to unhide the hidden rows to check them (select the row just before and the row just after hidden rows, right-click, unhide). After you correct the errors, you can hide them again.

This is the Sanotronics simulation with 100 trials that was covered in the lecture. Here, we want to illustrate how the results can change when different distributions are used for some of the random variables.

Suppose the following changes occur in the assumptions.

- Parts cost follows a normal distribution with mean of $90 and standard deviation of $10.

- Demand now follows a uniform distribution between 7,500 and 30,000 units.

The appropriate changes have been made in the Excel sheet. Do not change the given random numbers.

Round all answers up to 2 decimal places.

1) What is the direct labor cost per unit for trial 1?

2) What is the parts cost per unit for trial 1?

3) What is the demand for trial 1?

4) What is the mean profit?

5) What is the maximum profit?

5) What is the probability of loss (in %) ?

6) What is the value at risk (rounded to whole $)? Remember to give the absolute value.

Sonntrnnie Simulstinn with 1 nn Triole