LatinOrg Inc. sells an organic product made in Costa Rica. Because the time it t
ID: 3237415 • Letter: L
Question
LatinOrg Inc. sells an organic product made in Costa Rica. Because the time it takes to receive and order the products, LatinOrg places an order every two weeks. The number of products ordered is the difference between the actual on-hand inventory at the end or the week that the order is made and 100, the maximum allowed amount. It cost $50 to place and received an order, $4 each product, and $1/week to keep the product in the store. The product sells for $12. The historical information of on-hand inventory at the time an order is made is as showed. a) Simulating 60 weeks, what is the estimated average order size (show your data or calculations)? b) Based on the simulation, what is the average total cost of "having'' the product?Explanation / Answer
a)
Average order quantity = 78.05
b)
Average total cost of having product is 562.2
Rand() On hand Inventory Order Quantity Order cost Product value Hol up cost Total Cost Total Revenue Profit 0.9708 40 60 50 240 200 490 720 230 0.9974 42 58 50 232 200 482 696 214 0.0815 0 100 50 400 200 650 1200 550 0.0296 0 100 50 400 200 650 1200 550 0.4100 25 75 50 300 200 550 900 350 0.4655 25 75 50 300 200 550 900 350 0.4040 25 75 50 300 200 550 900 350 0.7235 35 65 50 260 200 510 780 270 0.6298 25 75 50 300 200 550 900 350 0.9035 35 65 50 260 200 510 780 270 0.6063 25 75 50 300 200 550 900 350 0.3245 15 85 50 340 200 590 1020 430 0.3158 15 85 50 340 200 590 1020 430 0.9428 40 60 50 240 200 490 720 230 0.7568 35 65 50 260 200 510 780 270 0.5181 25 75 50 300 200 550 900 350 0.7402 35 65 50 260 200 510 780 270 0.5221 25 75 50 300 200 550 900 350 0.9261 40 60 50 240 200 490 720 230 0.4731 25 75 50 300 200 550 900 350 0.5166 25 75 50 300 200 550 900 350 0.3074 15 85 50 340 200 590 1020 430 0.0749 0 100 50 400 200 650 1200 550 0.0096 0 100 50 400 200 650 1200 550 0.0580 0 100 50 400 200 650 1200 550 0.4850 25 75 50 300 200 550 900 350 0.7371 35 65 50 260 200 510 780 270 0.1165 0 100 50 400 200 650 1200 550 0.9447 40 60 50 240 200 490 720 230 0.5673 25 75 50 300 200 550 900 350 0.1754 15 85 50 340 200 590 1020 430 0.5154 25 75 50 300 200 550 900 350 0.6659 25 75 50 300 200 550 900 350 0.4154 25 75 50 300 200 550 900 350 0.0693 0 100 50 400 200 650 1200 550 0.7434 35 65 50 260 200 510 780 270 0.2868 15 85 50 340 200 590 1020 430 0.2785 15 85 50 340 200 590 1020 430 0.3854 25 75 50 300 200 550 900 350 0.3258 15 85 50 340 200 590 1020 430 0.2931 15 85 50 340 200 590 1020 430 0.0277 0 100 50 400 200 650 1200 550 0.8624 35 65 50 260 200 510 780 270 0.5707 25 75 50 300 200 550 900 350 0.7235 35 65 50 260 200 510 780 270 0.1865 15 85 50 340 200 590 1020 430 0.4826 25 75 50 300 200 550 900 350 0.1333 15 85 50 340 200 590 1020 430 0.3164 15 85 50 340 200 590 1020 430 0.8883 35 65 50 260 200 510 780 270 0.7584 35 65 50 260 200 510 780 270 0.3552 15 85 50 340 200 590 1020 430 0.4563 25 75 50 300 200 550 900 350 0.0516 0 100 50 400 200 650 1200 550 0.8321 35 65 50 260 200 510 780 270 0.0781 0 100 50 400 200 650 1200 550 0.6462 25 75 50 300 200 550 900 350 0.5190 25 75 50 300 200 550 900 350 0.7534 35 65 50 260 200 510 780 270 0.2381 15 85 50 340 200 590 1020 430 Average 78.05 50 312.2 200 562.2 936.6 374.4Related Questions
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