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The management of Brinkley corporation is interested in using simulation to estimate the profit in dollars per unit for a unit product. The selling price
The management of Brinkley corporation is interested in using simulation to estimate the profit in dollars per unit for a unit product. The selling price for the product will be $43 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation costs are estimated in the following table.
\begin{tabular}{|c|c|c|c|c|c|} \hline ProcurementCost($) & Probability & LaborCost($) & Probability & TransportationCost($) & Probability \\ \hline 10 & 0.25 & 20 & 0.10 & 3 & 0.75 \\ \hline 11 & 0.45 & 22 & 0.25 & 5 & 0.25 \\ \hline 12 & 0.30 & 24 & 0.35 & & \\ \hline & & 25 & 0.30 & & \\ \hline \end{tabular} (a) Cornbute profit (in \$) per anit for the base case: scenario: icmit (b) Compite profit (in s) per unit for the worst-case scenario (hinit (c) compute profit (in 5) per unit for the best-case scenario. (d) Construct al simulation model to estimate the mean profit (in $ ) per unit. (Use at least 1,000 triais, Round your answer to two decimal places.) (e) Why is the simulation approach ta risk analysis preferable to generating a variety of what-if seenarios? Sirnulation will provide of the proit per unit values which can then be used to find please answer a,b,c and d
d) management believes the project may not be sustainable if the project per unit is less than five dollars. Use simulation to estimate the probability of the profit per unit will be less than five dollars. (round your answer to three decimal places.)
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