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Model File Available: Download BrinkleyIMS.xIsx The management of Brinkley Corporation is interested in using simulation to estimate the profit ( in $ ) per unit
Model File Available: Download BrinkleyIMS.xIsx The management of Brinkley Corporation is interested in using simulation to estimate the profit in $ per unit for a new product. The selling price for the product will be $ per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated in the following table. tabletableProcurementCost$Probability,tableLaborCost $Probability,tableTransportationCost $Probability a Compute profit in $ per unit for the basecase scenario. $ unit b Compute profit in $ per unit for the worstcase scenario. $ unit c Compute profit in $ per unit for the bestcase scenario. $ unit d Construct a simulation model to estimate the mean profit in $ per unit. Use at least trials. Round your answer to two decimal places. $ e Why is the simulation approach to risk analysis preferable to generating a variety of whatif scenarios? Simulation will provide of the profit per unit values which can then be used to find of an unacceptably low profit. f Management believes the project may not be sustainable if the profit per unit is less than $ Use simulation to estimate the probability the profit per unit will be less than $Round your answer to three decimal places.
Model File Available:
Download BrinkleyIMS.xIsx
The management of Brinkley Corporation is interested in using simulation to estimate the profit in $ per unit for a new product. The selling price for the product will be $ per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated in the following table.
tabletableProcurementCost$Probability,tableLaborCost $Probability,tableTransportationCost $Probability
a Compute profit in $ per unit for the basecase scenario.
$ unit
b Compute profit in $ per unit for the worstcase scenario.
$ unit
c Compute profit in $ per unit for the bestcase scenario.
$ unit
d Construct a simulation model to estimate the mean profit in $ per unit. Use at least trials. Round your answer to two decimal places.
$
e Why is the simulation approach to risk analysis preferable to generating a variety of whatif scenarios?
Simulation will provide
of the profit per unit values which can then be used to find of an unacceptably low profit.
f Management believes the project may not be sustainable if the profit per unit is less than $ Use simulation to estimate the probability the profit per unit will be less than $Round your answer to three decimal places.
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