MET AD 616 Assignment 1 - Revised - Michael Simons

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School

Boston University *

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AD 616

Subject

Industrial Engineering

Date

Dec 6, 2023

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docx

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Uploaded by BaronArt12140

Assignment 1 – Michael Simons Question 1 – Rnorm was used to determine the distribution for each site. These were then added together for as “Total”, and the mean and standard deviation of the total were determined. A histogram of the total was then created.

Question 2 – Parameters were added into R showing that the mean battery life is 7 years with a standard deviation of 2 years. Battery life was simulated using rnorm. A refund (if owed) is calculated as $10 + $1.50 * number of months owed. To determine if a refund is owed, the refund is only calculated if battery life was less than 5 years, otherwise the refund is $0. The average cost per phone is calculated using the mean of all simulation results, and the probability of owing a refund is calculated by determining the average number of times a refund was owed in the simulation out of the 100,000 results. The expected cost per refund is the average of all refunds that were greater than zero.

Question 3 – Each option was calculated using the below parameters, with each permutation changing the number of servings prepared. The daily demand was calculated using the rnorm function, with the revenue calculated using the the lower of either the daily demand or the number of servings created multiplied by the price

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