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

Probability

Eggs

Chicken

Turkey

0.05

174

258

288

0.10

210

289

308

0.15

234

302

320

0.05

250

320

340

0.15

268

342

352

0.10

290

366

366

0.15

308

388

382

0.10

324

400

403

0.10

348

421

440

0.05

384

454

480

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

Product

Unit Revenue

Unit Cost

Eggs

$1.76

$0.98

Chicken

$2.69

$1.88

Turkey

$3.29

$2.03

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

Product

Fixed Monthly Display Cost

Eggs

$99

Chicken

$229

Turkey

$309

1. Use 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.Use a table for tracking sales over one year (Jan 2021-Dec 2021) with separate columns for Eggs, Chicken and Turkey. 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. Use 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. Use a data table to generate 50 runs of the simulation and calculate the average profit of the50 simulation runs. Calculate the average profit over