Assignment 1: Jet Copies Case Problem
Assignment 1: JET Copies Case Problem
Rose Leahy
Strayer University
Quantitative Methods-MAT540
Dr. Patricia DeJarnett
July 21, 2013
Assignment 1: JET Copies Case Problem
Read the “JET Copies” Case Problem on pages 678-679 of the text. Using simulation estimate the loss of revenue due to copier breakdown for one year, as follows:
In Excel, use a suitable method for generating the number of days needed to repair the copier, when it is out of service, according to the discrete distribution shown.
(See Excel spreadsheet)
In Excel, use a suitable method for simulating the interval between successive breakdowns, according to the continuous distribution shown.
(See Excel spreadsheet)
In Excel, use a suitable method for simulating the lost revenue for each day the copier is out of service.
(See Excel spreadsheet)
Put all of this together to simulate the lost revenue due to copier breakdowns over 1 year to answer the question asked in the case study.
In a word processing program, write a brief description/explanation of how you implemented each component of the model. Write 1-2 paragraphs for each component of the model (days-to-repair; interval between breakdowns; lost revenue; putting it together).
In this case study the students bought a copier for $18,000 to start their own copy business after noticing a need for it. After purchasing the copier they found out that the one that they purchased is known to break down frequently, and was known to usually take anywhere from one to four days to repair with the time between breakdowns estimated between zero and six weeks. They estimated that they would sell between 2,000 and 8,000 copies per day at .10 per copy. With this expected demand the students wanted to analyze whether they should purchase a back up copier for $8,000 to avoid the potential loss during breakdowns. In order to analyze this they created a simulation to estimate the amount of revenue that would be lost if
Rose Leahy
Strayer University
Quantitative Methods-MAT540
Dr. Patricia DeJarnett
July 21, 2013
Assignment 1: JET Copies Case Problem
Read the “JET Copies” Case Problem on pages 678-679 of the text. Using simulation estimate the loss of revenue due to copier breakdown for one year, as follows:
In Excel, use a suitable method for generating the number of days needed to repair the copier, when it is out of service, according to the discrete distribution shown.
(See Excel spreadsheet)
In Excel, use a suitable method for simulating the interval between successive breakdowns, according to the continuous distribution shown.
(See Excel spreadsheet)
In Excel, use a suitable method for simulating the lost revenue for each day the copier is out of service.
(See Excel spreadsheet)
Put all of this together to simulate the lost revenue due to copier breakdowns over 1 year to answer the question asked in the case study.
In a word processing program, write a brief description/explanation of how you implemented each component of the model. Write 1-2 paragraphs for each component of the model (days-to-repair; interval between breakdowns; lost revenue; putting it together).
In this case study the students bought a copier for $18,000 to start their own copy business after noticing a need for it. After purchasing the copier they found out that the one that they purchased is known to break down frequently, and was known to usually take anywhere from one to four days to repair with the time between breakdowns estimated between zero and six weeks. They estimated that they would sell between 2,000 and 8,000 copies per day at .10 per copy. With this expected demand the students wanted to analyze whether they should purchase a back up copier for $8,000 to avoid the potential loss during breakdowns. In order to analyze this they created a simulation to estimate the amount of revenue that would be lost if
References: Taylor, B.M. (2010). Introduction to management science (10th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.