I need help setting up an excel spreadsheet to solve this problem.
Students bought an $18,000 copier to start their own copy business.
- Wanted to purchase a smaller copier for $8,000 as back-up
- Created a simulation to estimate the amount of revenue that would be lost if they did not have a backup
- Time between breakdowns is 0 weeks to 6 weeks (see probability function on page 679, and provided later in this set up
- Developed following probability distribution of repair times:
Repair Time (days)
- Estimated they would sell between 2,000 and 8,000 copies per day at 10 cents (0.10) per copy
- Used a uniform probability distribution between 2,000 and 8,000 to estimate how many copies they would sell per day
- If loss of revenue due to machine downtime during 1 year is greater than or equal to $12,000, then they should purchase the back-up copier
- Decided to conduct a manual simulation of this process for 1 year to see if the model was working correctly
Is tomorrow okay. And yes, I'm okay with the additional bonus. I appreciate the help.
Thank you very much for your help. This really helps me out a lot! Thanks again. I would definitely recommend you to others.