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Please Provide Answers with Excel Formulas Question 2: Walton Bookatore case: In August, Walton must decide how many of next year's nature calendars to order.
Please Provide Answers with Excel Formulas
Question 2: Walton Bookatore case: In August, Walton must decide how many of next year's nature calendars to order. Each calendar costs 57.50 and sell 5 for 510. After February 1, all unsold calendars will be returned to the publisher for a refund of 52.50/ calendar. You were hired as a summer intern to help him decide how much to order. You know you have to find out how the demand for the nature calendar will be like. Mr. Walton told you the previous summer intern did build a small database last year of historical demand, from which he had found the best-fit probability distribution for the demand for a similar nature calendar last year is a normal distribution with mean of 175 and standard deviation of 50 . You find this problem is very similar to a newsvendor problem you learned at school. You decide to use excel to find out what the theoretical newsvendor solution would be. You also have leamed using simulation, you decide to find out your simulated optimal order quantity as well to see how far it is from the theoretical solution (use 5000 iterations). Mr. Walton is also interested in finding out when ordering the optimal order quantity obtained from your simulation, (A) what is the max, min, and average profit? (B) What is the probability that the profit is less then 5200 for this calendar and what is the probability to lose money in selling this calandar? (C) What is the probability that the profit is leas than 5200 but greater than 550 (Hint: Google how to use COUNIIFS function to do this)? (D) He also would like to see how the profit looks like under the optimal order quantity (think about vhat kind of graph you can use to show how the profit looks like). It is important that for each worksheet, output and anawer ahould be clearly labeled. If neceasary, use Textbor to add comments or label answers. Simulation of Walton's bookstore Cost data Demand -normal distrihution
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