Busi. 410 HW 2 Q4

Busi. 410 HW 2 Q4 - total profit would not exceed $10000 c...

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INPUTS Tons of steel generate 400 Price per ton (North St 50 Shortage penalty per t 100 Price per ton (scrap m 40 Demand (scrap metal 70 Price per ton (recycler 30 Demand (recycler) 100 DECISIONS Tons of steel to North 500 Forecast: Total profit CALCULATIONS Statistic Forecast values Profit from North Steel 20000 Trials 500 Cost of shortage pena 10000 Base Case 10,000.00 Profit from scrap meta 0 Mean 15,858.49 Profit from recycler -5100 Median 18,032.77 Mode '--- PERFORMANCE MEASURES Standard Deviat 12,603.62 Total profit 10000 Variance ### Skewness -0.65 Kurtosis 2.41 Coeff. of Variabi 0.79 Minimum -17,071.44 Maximum 31,462.93 Mean Std. Error 563.65 a. The average profit earned if 500 tons were supplied to North Steel would be $15,858.49. b. There would be a 33.88% chance
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Unformatted text preview: total profit would not exceed $10000. c. According to the decision table, they should contract 400 tons of steel with North Steel to maximize profit. Tons of steel to North Steel (100.00) Tons of steel to North Steel (200.00) Tons of steel to North Steel (300.00) Tons of steel to North Steel (400.00) Tons of steel to North Steel (500.00) Tons of steel to North Steel (600.00) Tons of steel to North Steel (700.00) Tons of steel to North Steel (800.00) 10,929.55 15,541.25 18,903.95 19,491.58 15,858.49 8,881.88-73.32-9,964.76 1 2 3 4 5 6 7 8 Trend Chart Overlay Chart Forecast Chart Tons of steel to North Steel (900.00)-19,964.76 9...
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Busi. 410 HW 2 Q4 - total profit would not exceed $10000 c...

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