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PLEASE SHOW CLEAR EXCEL FILE FORMULAS, WILL UPVOTE Use a separate sheet for each question. Name each sheet as question number. Label the tabs as

PLEASE SHOW CLEAR EXCEL FILE FORMULAS, WILL UPVOTE

Use a separate sheet for each question. Name each sheet as question number. Label the tabs as "Q Set 1", "Q Set 2", and "Q Set 3", respectively. Be sure to label all results clearly.

Question Set 1.

You are an inventory management consultant. You have been hired by Walmart to help optimize inventory management for their Dairy department. Your immediate task is building a Monte Carlo simulation for sales of Milk, Eggs and Cheese. The probabilities of monthly demand levels are:

Probability

Milk

Eggs

Cheese

0.05

184

268

288

0.10

200

299

318

0.15

224

302

330

0.05

240

310

350

0.15

258

345

362

0.10

280

368

376

0.15

318

378

392

0.10

304

400

413

0.10

358

411

450

0.05

374

444

490

The unit revenues and costs are given in the table below.

Product

Unit Revenue

Unit Cost

Milk

$1.86

$1.18

Eggs

$2.79

$1.98

Cheese

$3.39

$2.15

Each product has a separate display with an associated fixed monthly cost:

Product

Fixed Monthly Display Cost

Milk

$100

Eggs

$200

Cheese

$300

1. (5pts) Build a table for the cumulative probability distribution for demand. It should be set up for use with the VLOOKUP function, with the cumulative probabilities on the left.

2. (15pts) Build a table for tracking sales over one year (Jan 2021-Dec 2021) with separate columns for Milk, Eggs and Cheese. This will just be the randomized demand value for each item for each month (like in 10.1.2 from the lab exercise on Monte Carlo simulations). For this assignment, assume all demand is actually met (that is, sales = demand) and there is no other inventory loss except through sales.

3. (10pts) Build a table for tracking total revenues, costs, and profit for the year. This table should use the information provided in your answer to 2., above. Your table should calculate values for:

  • Total Revenue (based on the combined sales of all three products over the year)
  • Total Cost (also based on combined sales, and including cost of goods sold and fixed costs)
  • Profit/Loss (total revenue minus total costs)

4. (10pts) Create a data table to generate 50 runs of the simulation and calculate the average profit of the 50 simulation runs. As in previous assignments, this must be an actual data table structure to earn full credit. Calculate the average profit over the 50 simulation runs.

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