Premium Essay

540-Quantity Analysis

In: Business and Management

Submitted By pleebo1
Words 695
Pages 3
Jet Copies Case Problem

1 If you assume that the number of days needed to repair a copier is random, you can generate a random number using the Excel RAND function which I denoted r2 between 0 and 1. If
0 < r2 < 0.2 then it takes 1 day
0.2 < r2 < 0.65 then it takes 2 days
0.65 < r2 < 0.90 then it takes 3 days
0.9 < r2 < 1 then it takes 4 days

2 The probability distribution of the random variable varies between the times of 0 to 6 weeks, with the probability increasing as time goes on. This can be approximated by the function f(x) = x/18 for 0 < x < 6
Therefore, the distribution function is f(x) = x-square divided by 36 for 0 < x < 6
If we set this equal to another random number r1 that is between 0 and 1 then
R1 = x-square divided by 36 which results to x = 6√ r1

3 Since the number of copies sold per day is a uniform probability distribution between 2000 to 8000 copies, I made r3 a random number between 2000 to 8000. To get the amount of business lost on a particular day, I take r3 X (repair time), and the lost revenue is then equal to 0.1 X r3 X repair time, since they charge $0.10 per copy.
4 After running the simulation, I got the following results:
Repair Distribution
P(x) Cumulative Repair time
0.2 0.000 1.000
0.45 0.200 2.000
0.25 0.065 3.000
0.1 0.900 4.000

Break
Down Random
R1 Time b/w
Breakdowns
(weeks) Cumulative
Time
Random
R2 Repair
Time Random
R3 Revenue Lost
1 0.438236 3.971962 3.972 0.654621 3 6816 2044.8
2 0.284183 3.198529 7.170 0.515641 3 2895 868.5
3 0.784991 5.315983 12.486 0.530752 3 2492 747.6
4 0.12831 2.149221 14.636 0.809406 3 6032 1809.6
5 0.582568 4.579569 19.215 0.691707 3 4014 1204.2
6 0.60811 4.678886 23.894 0.429104 3 3506 1051.8
7 0.664496 4.890997 28.785 0.030428 1 2513 251.3
8 0.784303 5.313652 34.099 0.378009 3 3372 1011.6
9 0.309256 3.336645 37.435 0.70706 3 6392 1917.6
10

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