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Quiz 4 Fall 10 and Soln

Quiz 4 Fall 10 and Soln - Each book they sell(new or used...

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MGMT 306: Quiz 4 Name:_________________________________ Section: _______________________ 1. Which of the following are TRUE about a simulation model? (Circle any that apply.) a. Data tables are commonly used to compare different values of the decision variable and their impact on the output variable of interest when using @RISK. b. Histograms of historical data can be used to selected appropriate input distributions. c. Tornado graphs can be used to graphically show how each of the random inputs affect the decision variable. 2. The University Bookstore is placing its order for new textbooks for Management 305 for the spring semester. The sell new and used books and expect many students to sell their used books back to them at the end of this semester. The number of used books sold back to them to be a triangular distribution with a minimum of 90, a maximum of 170 and a most likely value of 120. . They are considering orders of 120, 140, 160, or 180 books.
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Unformatted text preview: Each book they sell (new or used), they earn a profit of $50. If they run out of books, students will buy their books elsewhere. Excess books they can send back to the publisher for a restocking cost of $15 per book. The demand for books in the spring is normally distributed with a mean of 250 and a standard deviation of 15. The @RISK simulation is shown below. What formulas would be used in each of the following cells in this simulation? B10: A14: D14: H14: Solution: 1. Only b is true. a. We use RiskSimTable when using @RISK to compare different values of the decision variable and their impact on the output variable. b. True c. Tornado Graph show the impact on the output variable not decision variable. 2. Simulation Question B10: =RiskSimtable(E8:E11) A14: =ROUND(RiskTriang(A5,B5,C5),0) D14: =MIN(B14:C14) or =IF(B14<C14,B14,C14) H14: =RISKOutput()+E14 – G14...
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