Solve the following Make in-house or outsource decision model using Monte Carlo Simulation of Data Table. The production level has to be set equal to demand. Demand is assumed to follow a normal distribution of mean = 1200 and a standard deviation of 175. Make 1000 trials to simulate demand to find out the approximate probability to meet the demand through outsourcing, Data Manufactured in-house Fixed cost $50,000 Unit variable cost $135 Purchased from supplier Unit cost $180 Production volume Model Total manufacturing cost Total purchased cost Cost difference Decision (Production/ Outsourcing)
Solve the following Make in-house or outsource decision model using Monte Carlo Simulation of Data Table. The production level has to be set equal to demand. Demand is assumed to follow a normal distribution of mean = 1200 and a standard deviation of 175. Make 1000 trials to simulate demand to find out the approximate probability to meet the demand through outsourcing, Data Manufactured in-house Fixed cost $50,000 Unit variable cost $135 Purchased from supplier Unit cost $180 Production volume Model Total manufacturing cost Total purchased cost Cost difference Decision (Production/ Outsourcing)
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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Solve the following Make in-house or outsource decision model using Monte Carlo Simulation of Data Table. The production level has to be set equal to demand. Demand is assumed to follow a
Data
Manufactured in-house
Fixed cost
$50,000
Unit variable cost
$135
Purchased from supplier
Unit cost
$180
Production volume
Model
Total manufacturing cost
Total purchased cost
Cost difference
Decision (Production/ Outsourcing)
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