Shelandria Jones
Strayer University
MAT 540-Quantitative Methods
Dr. Raymond Ottinot
February 5, 2013

Introduction

Jet Copies is a business venture of a couple of young men who had the insight to open up a copy business. James Ernie and Terri received a loan from Terri’s parents of $18,000. Due to information they have received the large copier they purchased has a history of breakdowns often for a few days. So the three guys are looking into possibly getting a smaller copier. The purchase of the smaller copier can be used while the other larger copier is being repaired. Before they ask anyone about loaning them any additional money they would like to come up with a simulation to show why the purchase of the smaller copier would be beneficial. The cost of the smaller copier is $12,000.

Breakdowns

I used originally 20 breakdowns but then I ended up going to 13 breakdowns. I then created a list of random numbers. The list of random numbers was figured out in excel with the formula =RAND. Which is depicted by the column r2. After obtaining these random numbers and then using the chart that was provided below I then reviewed my random numbers to see where they fell inline with the repair time day chart. The chart was gathered by Terri from the college of business in which the point was to try and get an understanding how long it would take to get the copier that they purchased repaired if in fact it did break down. Using her chart I then created another list of random numbers using the same formula =RAND, which is depicted in column labeled r1. I then looked at my random numbers to see where they fell in with Terri’s data chart to see how the random numbers turned into how many days it would take to fix. Next we had to figure out the time between breakdowns. The formula that was used to obtain the time between breakdowns is (6x sqrt x r1). This information is depicted in the column labeled Time between Breakdowns. Next I...

...JETCopies Problem
Lost revenue of JetCopies due to breakdown can be done by generating random numbers from different probability distributions according the given probability law. The different steps of this simulation and assumption made are explained below.
1. Simulation for the repair time.
It is given that the repair time follows
|Repair Time (days) |Probability |
|1 |0.2 |
|2 |0.45 |
|3 |0.25 |
|4 |0.10 |
To generate a random number from the above distribution, we use the following procedure.
Generate a random number denoted by r2 from between 0 and 1. If this generated random number is less than or equal to 0.2 take repair time = 1. If the generated random number is 0.2 to 0.65, we take repair time =2. If the generated random number is 0.65 to 0.90, we take repair time = 3 and take 4 otherwise.
2. Simulation for break-down Distribution
Given that the probability distributions of random variable X representing the time between break-downs varies from 0 to 6 weeks with...

...Assignment #1: JETCopiesCase Problem
Read the “JETCopies” 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:
1. 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.
2. In Excel, use a suitable method for simulating the interval between successive breakdowns, according to the continuous distribution shown.
3. In Excel, use a suitable method for simulating the lost revenue for each day the copier is out of service.
4. 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.
5. 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).
6. Answer the question posed in the case study. How confident are you that this answer is a good one? What are the limits of the study? Write at least one paragraph.
Case Problem
James Banks was standing in line next to Robin Cole at Klecko’s Copy Center, waiting to use one of the...

...Running Head: JETCOPIESCASEJETCopiesCase
Math 540
Winter 2013
JETCopiesCase
Introduction
Before starting the case, it is important to know how this case will be evaluated through excel, the functions and their application, and how they quantifiably accentuate on the variables and known possibilities of the case. The major functions that are used in this particular case are RANDBETWEEN and SQRT in order to identify the relationship of how they simulate and validate the confidence in the results.
RANDBETWEEN & EXCEL
Excel is an excellent application, which has many functions not only of mathematical calculations, like logic. Most people see it as a "challenge", which actually is not. Always bear in mind that Excel is nothing but a game of battleship. This is a set of lines and columns, which are the vessels, and based on the crossing of these lines and columns; seek to achieve the most likely target.
In Excel we have to view the location of each row and column, finding the respective numbers of rows and columns of letters, to achieve the desired end result. I suggest you use it to try to enter their functions, avoid the maximum use of the wizard, it somehow becomes a "settling" deprives us of better assimilate the functions. Typing functions makes...

...JETCopiesCase Problem
Assignment 1
Professor
Dr. Elena Klimova
MAT 540 – Quantitative Methods
Janeiro 28, 2013
5.
Model number of days to repair
In regard to the first part of the Case Problem (The average number of days needed to repair the copier), I worked on the Excel to find the number of the days required to repair the copier (Repair Time (days). In Excel, I wrote down the table information given from thecase study to make it easier to find it and copy, if necessary. I used the RAND() function in to create random values for column F4:F16. After created the RAND()values, I copied and pasted the values in the column F4:F16 because I needed to freeze the number, otherwise it would keep changing. Using the random probabilities numbers created previously by the function RAND(). I used Excel function VLOOKUP to find the number of days needed to repair =VLOOKUP(F4,LookUp,2) to =VLOOKUP(F16,LookUp,2) and the sum gave me the information of number of days needed to repair the copier.=2 days. Per the calculations, the average repair time is 2 days.
Model number of weeks between breakdowns
In regard to the second part of the case (The average number of weeks between breakdowns), to find the time between breakdowns in weeks, I used the maximum number of 6 weeks which is in cell I4, and I used formula =6*SQRT(H4). I pulled the formula down and erase the numbers...

...Read the "JETCopies" 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.
In Excel, use a suitable method for simulating the interval between successive breakdowns, according to the continuous distribution shown.
In Excel, use a suitable method for simulating the lost revenue for each day the copier is out of service.
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).
Answer the question posed in the case study. How confident are you that this answer is a good one? What are the limits of the study? Write at least one paragraph.
There are two deliverables for this Case Problem, the Excel spreadsheet and the written description/explanation. Please submit both of them electronically via the dropbox.Assignment #1: JETCopiesCase...

...JetCopiesCase Study
1. 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.
2. In Excel, use a suitable method for simulating the interval between successive breakdowns, according to the continuous distribution shown.
3. In Excel, use a suitable method for simulating the lost revenue for each day the copier is out of service.
4. 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.
5. 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).
6. Answer the question posed in the case study. How confident are you that this answer is a good one? What are the limits of the study? Write at least one paragraph.
Answers
1.
# of days P(x) Cumulative
1 0.2 0
2 0.45 0.2
3 0.25 0.65
4 0.1 0.9
Q: 2-4.
Break Random times b/w Random Repair Random Lost cumulative
down # 1 Break (weeks) # 2 Time #3 Revenue time
1 0.78468 5.314929 0.88991 3 2237 $6,711 5.314929
2 0.512227 4.294201 0.831365 2 3244 $6,488 9.60913
3 0.389251 3.743399 0.912647 2 5874 $11,748 13.35253
4 0.998082 5.994243 0.216353 1 3330 $3,330...

...JETCopies Problem
The simulation of JetCopies can be done by generating random numbers from given probability distributions. The different steps of this simulation and assumption made are explained below.
1. Simulation for the repair time.
It is given that the repair time follows
Repair Time (days) Probability
1. .20
2. .45
3. .25
4. .10
-----
1.00
To generate a random number from the above distribution, we use the following procedure.
Generate a random number denoted by r2 from between 0 and 1. If this generated random number is less than or equal to 0.2 take repair time = 1. If the generated random number is 0.2 to 0.65, we take repair time =2. If the generated random number is 0.65 to 0.90, we take repair time = 3 and take 4 otherwise.
2. Simulation for break-down Distribution
Given that the probability distributions of random variable X representing the time between break-downs varies from 0 to 6 weeks with probability increasing continuously, the copier went without breaking down can be approximated by the probability distribution
f(x) =x/18 0 < x < 6
Hence the distribution function of x is
F(x)=x2/36 0 < x < 6
If r1 is another random number generated between 0 and 1, then we can write
r1= x2/36
Hence x=6[pic]
Therefore to simulate...

...assignment, we had discussed the background and the introduction of the company, which wants to cater to this segment. This paper will discuss the long-term capital budgeting decisions that such a company needs to make.
Online a plan those managers in the low-calorie microwavable food company could follow when selecting pricing strategies for making their products as inelastic as possible.
The company aims to keep the prices of its products as inelastic as possible. This means that the pricing strategy should have no impact on the way the consumers perceive and buy such products. Generally we see such demand only in situations in which the good or services are indispensable and the consumers cannot do without those. However, this is not the case for microwavable food products. There is competition in the market to keep the prices under check. Hence, the company needs to do two things to make its prices inelastic-
First of all the company needs to spend money on the R&D efforts to differentiate its products from the rest of the players. This differentiation depends on the core product, advisory service that comes along with the product, packing, availability, support services or virtually anything else.
As the second measure, it needs to send down two important messages to its potential as well as current customers through its marketing communication efforts- First that the low calorie food should not be choice but essential and second that the company...