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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
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 Meat, Seafood and Produce. The probabilities of monthly demand levels are: Probability Meat Seafood Produce 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 0.10 324 400 413 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 Meat $1.76 $1.08 Seafood $2.69 $1.88 Produce $3.29 $2.05 Each product has a separate display with an associated fixed monthly cost: Product Fixed Monthly Display Cost Meat $80 Seafood $160 Produce $240 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 2023-Dec 2023) with separate columns for Meat, Seafood and Produce. 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. solve using excel how do i do it
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