You must Click this button in order to begin the exam. You only need to click once, but if you click repeatedly, nothing will explode. Please note that your 4 hour window began when you downloaded this file.

Problem 2: Simulation Modeling | 8/11/17 11:56 | 8/19/17 5:18 | ||||||||||||||||||

Price Per Unit Inputs | ||||||||||||||||||||

$ 120 | 25% | Cost of Lost Profits (per unit) | ||||||||||||||||||

$ 160 | 50% | $ 50 | ||||||||||||||||||

$ 200 | 25% | |||||||||||||||||||

Year 1 Cost per Unit Inputs | Production Levels to Consider | |||||||||||||||||||

Mean | $ 100 | 30,000 | ||||||||||||||||||

StDev | $ 20 | 40,000 | ||||||||||||||||||

50,000 | ||||||||||||||||||||

60,000 | ||||||||||||||||||||

Year 1 Demand Inputs | 70,000 | |||||||||||||||||||

Mean | 50,000 | |||||||||||||||||||

StDev | 5,000 |

RDK has just developed a state of the art wearable technology device and wants to determine a production level for the next three years. (Note: Once set, the production level will remain the same for all three years.) RDK’s marketing department has estimated the device has a 25% chance of selling for $120, a 50% chance of selling for $160, and a 25% chance of selling for $200. The selling price is random, but once it is set, the price applies to all devices sold. Variable production cost per device is assumed to be normally distributed with a mean of $100 and a standard deviation of $20 for the first year. After the first year, the cost is expected to reduce by 5% per year for each of the next two years (HINT: only the first year is a random variable). The annual demand for the device during first year is believed to be normally distributed with mean 50,000 and standard deviation 5,000. For year two, the demand is normally distributed with the mean being the demand from year one. For year three, the demand is normally distributed with the mean being the demand from year two. For all three years, the standard deviation is 5000. RDK assumes that unmet demand will result in the loss of a customer, as they will likely buy a device from a competitor. As such, for each unit of unmet demand, RDK assumes a cost of $50. This will be considered a Cost of Lost Profit. RDK is considering the following production levels: 30,000, 40,000, 50,000, 60,000 and 70,000. Build a Monte Carlo simulation model to calculate the total profit after three years. Use a two-variable data table to simulate each of the production levels under consideration. For each production level, calculate the mean, standard deviation, min, and max of the distribution of Total Profit.

Don't use plagiarized sources. Get Your Custom Essay on

RDK’s marketing department

Just from $9/Page

8/11/17 11:56 |

8/19/17 16:40 | ||||||||||||||||||||||||

8/19/17 5:18 |

A company manufactures 3 products in 2 different factories. The cost of production and time required for production for each product varies depending on which factory produces it. The time and cost required for production of each product in each factory is provided in the tables in this worksheet. Demand for products 1, 2 and 3 are 200, 240 and 100 units, respectively. There are a total of 3000 hours available in each factory. Additionally, at least 60% of the total units of Product 1 must be produced in Factory A, and at least 40% of of the total units of Product 2 must be produced in Factory B. Create a linear programming model and use the Solver add-in to determine the optimal production plan that will minimize total cost. Note: The cost is per unit not per hour. All demand must be met.

RDK has just developed a state of the art wearable technology device and wants to determine a production level for the next three years. (Note: Once set, the production level will remain the same for all three years.) RDK’s marketing department has estimated the device has a 25% chance of selling for $120, a 50% chance of selling for $160, and a 25% chance of selling for $200. The selling price is random, but once it is set, the price applies to all devices sold. Variable production cost per device is assumed to be normally distributed with a mean of $100 and a standard deviation of $20 for the first year. After the first year, the cost is expected to reduce by 5% per year for each of the next two years (HINT: only the first year is a random variable). The annual demand for the device during first year is believed to be normally distributed with mean 50,000 and standard deviation 5,000. For year two, the demand is normally distributed with the mean being the demand from year one. For year three, the demand is normally distributed with the mean being the demand from year two. For all three years, the standard deviation is 5000. RDK assumes that unmet demand will result in the loss of a customer, as they will likely buy a device from a competitor. As such, for each unit of unmet demand, RDK assumes a cost of $50. This will be considered a Cost of Lost Profit. RDK is considering the following production levels: 30,000, 40,000, 50,000, 60,000 and 70,000. Build a Monte Carlo simulation model to calculate the total profit after three years. Use a two-variable data table to simulate each of the production levels under consideration. For each production level, calculate the mean, standard deviation, min, and max of the distribution of Total Profit.

Basic features

- Free title page and bibliography
- Unlimited revisions
- Plagiarism-free guarantee
- Money-back guarantee
- 24/7 support

On-demand options

- Writer’s samples
- Part-by-part delivery
- Overnight delivery
- Copies of used sources
- Expert Proofreading

Paper format

- 275 words per page
- 12 pt Arial/Times New Roman
- Double line spacing
- Any citation style (APA, MLA, Chicago/Turabian, Harvard)

We value our customers and so we ensure that what we do is 100% original..

With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read moreThe Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read moreThe Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read moreThe Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read moreBy placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more
The price is based on these factors:

Academic level

Number of pages

Urgency